[GRAPHIC OMITTED]
WARBURG PINCUS FUNDS
PART OF CREDIT SUISSE ASSET MANAGEMENT
SEMIANNUAL
REPORT
April 30, 2000
(Unaudited)
WARBURG PINCUS
BALANCED FUND
[BULLET]
WARBURG PINCUS
VALUE FUND
[BULLET]
WARBURG PINCUS
CAPITAL APPRECIATION FUND
[BULLET]
WARBURG PINCUS
GLOBAL HEALTH SCIENCES FUND
(FORMERLY, WARBURG PINCUS HEALTH SCIENCES FUND)
More complete information about the Funds, including charges and expenses, is
provided in the PROSPECTUS, which must precede or accompany this document and
which should be read carefully before investing. You may obtain additional
copies by calling 800-WARBURG(800-927-2874) or by writing to Warburg Pincus
Funds, P.O. Box 9030, Boston, MA 02205-9030.
Provident Distributors, Inc., Distributor, located at Four Falls Corporate
Center, 6th Floor West Conshohocken, PA 19428-2961 is not affiliated with Credit
Suisse Asset Management, LLC. Warburg Pincus Funds are advised by Credit Suisse
Asset Mangement, LLC.
<PAGE>
FROM TIME TO TIME, THE FUNDS' INVESTMENT ADVISER AND CO-ADMINISTRATORS MAY WAIVE
SOME FEES AND/OR REIMBURSE SOME EXPENSES, WITHOUT WHICH PERFORMANCE WOULD BE
LOWER. WAIVERS AND/OR REIMBURSEMENTS ARE SUBJECT TO CHANGE.
RETURNS ARE HISTORICAL AND INCLUDE CHANGE IN SHARE PRICE AND REINVESTMENT OF
DIVIDENDS AND CAPITAL GAINS. PAST PERFORMANCE CANNOT GUARANTEE FUTURE RESULTS.
RETURNS AND SHARE PRICE WILL FLUCTUATE, AND REDEMPTION VALUE MAY BE MORE OR LESS
THAN ORIGINAL COST.
THE VIEWS OF THE FUNDS' MANAGEMENT ARE AS OF THE DATE OF THE LETTERS AND
PORTFOLIO HOLDINGS DESCRIBED IN THIS DOCUMENT ARE AS OF APRIL 30, 2000; THESE
VIEWS AND PORTFOLIO HOLDINGS MAY HAVE CHANGED SUBSEQUENT TO THESE DATES. NOTHING
IN THIS DOCUMENT IS A RECOMMENDATION TO PURCHASE OR SELL SECURITIES.
FUND SHARES ARE NOT DEPOSITS OR OTHER OBLIGATIONS OF CREDIT SUISSE ASSET
MANAGEMENT, LLC ("CSAM") OR ANY AFFILIATE, ARE NOT FDIC INSURED AND ARE NOT
GUARANTEED BY CSAM OR ANY AFFILIATE. FUND INVESTMENTS ARE SUBJECT TO INVESTMENT
RISKS, INCLUDING LOSS OF YOUR INVESTMENT.
<PAGE>
WARBURG PINCUS BALANCED FUND
SEMIANNUAL INVESTMENT ADVISER'S REPORT -- APRIL 30, 2000
--------------------------------------------------------------------------------
June 20, 2000
Dear Shareholder:
For the six months ended April 30, 2000, the Common Class shares of Warburg
Pincus Balanced Fund had a return of 7.13%, vs. returns of 1.01% for the Lipper
Balanced Funds Index1, 7.19% for the S&P 500 Index2 and 1.06% for the Lehman
Brothers Intermediate Government/Corporate Bond Index3. The Fund's one-year
return through April 30, 2000 was 9.34%. Its five-year, 10-year and
since-inception (on October 6, 1988) average annual total returns through April
30, 2000 were 15.25%, 13.50% and 12.91%4, respectively.
The period saw continued strength in the U.S. economy, which fueled optimism
over corporate-earnings growth but which prompted the Federal Reserve to raise
interest rates to control inflation. Within this environment, stocks ultimately
had positive results, though they were quite volatile, especially within the
technology area (many technology-related stocks had double-digit losses in
April). Factors that drove this volatility included the Fed's actions, some
late-period evidence of inflation, concerns over the government's anti-trust
suit against Microsoft and general worries over valuations on high-flying
technology companies. Within the bond market, performance was generally
lackluster in terms of total return (i.e., bond-price changes plus coupon
income), reflecting the difficult interest-rate backdrop.
The Fund had respectable performance for the six months, both in absolute
terms and compared to that of its benchmarks. In fact, despite its sizable bond
component, the Fund performed roughly in line with the broad stock market (as
measured by the S&P 500 Index), aided by some timely stock selection and by good
showings from its telecommunications holdings in particular.
In terms of basic strategy, we maintained a roughly 60/40 allocation between
stocks and bonds through the period, reflecting our goal of providing
competitive returns while limiting overall portfolio volatility. Our stock
holdings remained broadly diversified by sector, and included exposure to
rapid-growth sectors (e.g., telecommunications & equipment) as well as
more-traditional industries (e.g., the financial-services, capital-equipment and
retail areas). Within the Fund's bond component, which we view primarily as a
source of stability and income, our emphasis remained on high-quality,
intermediate-term bonds.
1
<PAGE>
WARBURG PINCUS BALANCED FUND
SEMIANNUAL INVESTMENT ADVISER'S REPORT -- APRIL 30, 2000 (CONT'D)
--------------------------------------------------------------------------------
Going forward, we will continue to strive to provide competitive levels of
total return while employing a fairly conservative asset allocation. As ever,
our efforts will remain devoted to attempting to add value via careful security
selection.
Scott T. Lewis Charles C. Van Vleet M. Anthony E. van Daalen
Co-Portfolio Manager Co-Portfolio Manager Co-Portfolio Manager
----------
1 The Lipper Balanced Funds Index is an equal-weighted performance index,
adjusted for capital-gain distributions and income dividends, of the largest
qualifying funds in this investment objective, and is compiled by Lipper Inc.
2 The S&P 500 Index is an unmanaged index (with no defined investment objective)
of common stocks, includes reinvestment of dividends, and is a registered
trademark of McGraw-Hill Co., Inc.
3 The Lehman Brothers Intermediate Government/Corporate Bond Index is an
unmanaged index (with no defined investment objective) of intermediate-term
government and corporate bonds, and is calculated by Lehman Brothers Inc.
4 Warburg Pincus Asset Management, Inc. assumed management of the fund on
September 30, 1994.
2
<PAGE>
WARBURG PINCUS VALUE FUND
SEMIANNUAL INVESTMENT ADVISER'S REPORT -- APRIL 30, 2000
--------------------------------------------------------------------------------
June 20, 2000
Dear Shareholder:
For the six months ended April 30, 2000, the Common Class shares of Warburg
Pincus Value Fund (formerly Warburg Pincus Growth & Income Fund-the name change
was effective January 1, 2000) had a loss of 2.22%, vs. a return of 7.19% for
the S&P 500 Index1. The Fund's one-year return through April 30, 2000 was down
5.68%. Its five-year, 10-year and since-inception (on October 6, 1988) average
annual total returns through April 30, 2000 were 11.14%, 13.40% and 13.00%2,
respectively.
Effective December 31, 1999, Scott T. Lewis serves as the Fund's
Co-Portfolio Manager, and Brian S. Posner no longer serves as Co-Portfolio
Manager. Effective March 27, 2000, Robert E. Rescoe serves as Co-Portfolio
Manager, and Stacy Dutton no longer serves as Co-Portfolio Manager.
MANAGER COMMENTARY
The period was an overall positive though quite turbulent period for the U.S.
stock market. Stocks of rapid-growth companies once again paced the market's
rally, though these were particularly volatile, especially within the technology
sector. Many technology and Internet names finished the period on a difficult
note, suffering double-digit losses in April, a correction fueled by worries
over inflation and interest rates and other factors, such as concerns over the
government's anti-trust suit against Microsoft.
Against this backdrop, the Fund had a loss, hindered by the market's ultimate
preference for growth stocks during the period and by weakness in specific
areas, for example the capital-equipment sector. There were, to be sure, some
bright spots, including the Fund's energy holdings, which were buoyed by rising
oil prices and ongoing restructuring activity in the industry.
We made few noteworthy changes to the Fund during the period with respect to
sector emphasis or, for that matter, individual holdings. With few exceptions,
we continued to view our holdings as attractive, both on an absolute basis
(i.e., based on our analysis of a company's underlying worth) and on their
potential to outperform the broader market over time (due, e.g., to positive
earnings surprises).
We maintained a sizable weighting in the energy area. We believe that a
number of these companies have good long-term prospects, especially those
integrated, multinational oil companies engaged in consolidation activity. Such
activity, in our view, will result in significant cash-flow and earnings
improvements over time, even if energy prices remain flat or begin to pull back
(though our long-term outlook on the supply/demand backdrop for
3
<PAGE>
WARBURG PINCUS VALUE FUND
SEMIANNUAL INVESTMENT ADVISER'S REPORT -- APRIL 30, 2000 (CONT'D)
--------------------------------------------------------------------------------
energy remains constructive). Likewise, we maintained a meaningful weighting in
the oil-services area, where industry fundamentals have improved significantly
over the past year, a trend that we believe will continue.
Another area of emphasis for the Fund, on the margin, remained financial
companies. We maintained noteworthy weightings in both the banks and savings &
loan sector and the more-diversified financial-services sector. Our focus in the
bank area remained on companies well-positioned to benefit from an expanding
economy, not the least of which in our view are regional banks with sizable
industrial/commercial loan portfolios.
Elsewhere of note, we maintained significant exposure to the industrial &
manufacturing and capital-equipment sectors. A number of these companies offer
compelling value in our judgment, given relatively low valuations and active
restructuring programs.
The rest of the Fund remained invested across a wide range of sectors,
including the telecommunications & equipment area. Notwithstanding the generally
lofty valuations seen here, we continued to view certain stocks as compelling.
We also had a noteworthy weighting in the consumer area, chiefly via the retail
sector, though we also continued to find attractive stocks in the food,
beverages & tobacco area.
Looking ahead, we believe that sentiment toward the types of stocks targeted
by the Fund could improve materially in the not-too-distant future (indeed,
these stocks have performed relatively well over the past few months). Valuation
discrepancies between growth-oriented stocks and those typically associated with
value investing (e.g., out-of-favor economically sensitive stocks) remain wide,
however. Many value stocks, meanwhile, represent companies with healthy and
improving fundamentals. This stands to benefit value-oriented sectors of the
market, barring any retreat from equities generally. And given the strong
economy, we believe that stocks will remain, on the whole, compelling compared
to other asset classes. As ever, our focus will remain on identifying
fundamentally undervalued companies with the brightest longer-term prospects.
Scott T. Lewis Robert E. Rescoe
Co-Portfolio Manager Co-Portfolio Manager
----------
1 The S&P 500 Index is an unmanaged index (with no defined investment objective)
of common stocks, includes reinvestment of dividends, and is a registered
trademark of McGraw-Hill Co., Inc.
2 Warburg Pincus Asset Management, Inc. assumed management of the Fund on
January 1, 1992.
4
<PAGE>
WARBURG PINCUS CAPITAL APPRECIATION FUND
SEMIANNUAL INVESTMENT ADVISER'S REPORT -- APRIL 30, 2000
--------------------------------------------------------------------------------
June 20, 2000
Dear Shareholder:
For the six months ended April 30, 2000, the Common Class shares of Warburg
Pincus Capital Appreciation Fund had a gain of 31.88%, vs. a gain of 7.19% for
the S&P 500 Index.* The Fund's one-year return through April 30, 2000 was
43.14%. Its five-year, 10-year and since-inception (on August 17, 1987) average
annual total returns through April 30, 2000 were 31.39%, 20.83% and 17.57%,
respectively.
The period was a positive one for the U.S. stock market, buoyed by a growing,
indeed, accelerating, economy and a healthy profit outlook. Stocks were subject
to frequent bouts of volatility, however, due largely to worries over inflation
and interest rates (the Federal Reserve raised rates three times during the
period to head off potential inflation). In terms of sector performance,
growth-type stocks--e.g., technology and communications stocks--generally had
the best results for six months, the groups late period turbulance
notwithstanding (these stocks declined sharply in April, giving back a
significant portion of their earlier gains).
Against this backdrop, the Fund had a good showing, outpacing its benchmark
by a sizable margin. The Fund benefited from its continued emphasis on growth
stocks through the period and from good stock selection generally. Stocks that
aided the Fund's return included its technology, telecommunications, media and
health-care holdings.
We made no changes to the Fund during the period in terms of basic strategy,
remaining focused on what we deem to be reasonably priced stocks of companies
with good potential to control their own destiny. More specifically, we
continued to emphasize growth-oriented mid- and large-cap companies, stressing
factors such as strong brand recognition, good returns on equity, healthy
balance sheets and promising new products and/or services. We continued to find
a number of such companies within the technology and communications areas
(broadly defined), which accounted for a sizable portion of the Fund through the
period. In our view, a large number of these companies have compelling
longer-term growth prospects, in large part due to the dramatic rise of
Internet-based communications and commerce, a development that we believe is in
the very early innings.
Elsewhere, noteworthy sector weightings for the Fund continued to include the
pharmaceutical area, where we deemed certain stocks to be attractively priced.
Our focus here remained on large- and mid-cap pharmaceutical and biotechnology
names with existing products and the potential for successful drug launches
going forward.
5
<PAGE>
WARBURG PINCUS CAPITAL APPRECIATION FUND
SEMIANNUAL INVESTMENT ADVISER'S REPORT -- APRIL 30, 2000 (CONT'D)
--------------------------------------------------------------------------------
Areas in which we remained underweighted included financial stocks, based on
our view that a strong economy would put upward pressure on interest rates.
While a healthy economy augurs well for loan growth, we became concerned that
rising rates would restrain financial stocks over the intermediate term. We
viewed specific financial companies as attractive, however, especially within
the investment-banking area, where we increased our exposure late in the period.
We also had relatively limited exposure to cyclical, or economically
sensitive industries, in general because we continued to see better
opportunities within growth-oriented areas. We will, however, continue to seek
opportunities to selectively add economically-sensitive companies, particularly
those in the energy area.
Looking ahead, we believe that the market will continue to offer ample
opportunity, notwithstanding recent volatility and ongoing inflation and
interest-rate uncertainties. The economy appears unlikely to slow dramatically,
while innovation across a wide range of industries continues apace. As always,
we will continue to strive to identify stocks we deem to have best long-term
appreciation potential.
Susan L. Black
Portfolio Manager
----------
* The S&P 500 Index is an unmanaged index (with no defined investment objective)
of common stocks, includes reinvestment of dividends, and is a registered
trademark of McGraw-Hill Co., Inc.
6
<PAGE>
WARBURG PINCUS GLOBAL HEALTH SCIENCES FUND
SEMIANNUAL INVESTMENT ADVISER'S REPORT -- APRIL 30, 2000
--------------------------------------------------------------------------------
June 20, 2000
Dear Shareholder:
For the six months ended April 30, 2000, the Common Class shares of Warburg
Pincus Global Health Sciences Fund (formerly Warburg Pincus Health Sciences
Fund--the name change became effective February 29, 2000) had a gain of 16.42%,
vs. gains of 18.67% and 7.19%, respectively, for the Lipper Health/Biotechnology
Funds Index* and the S&P 500 Index.** The Fund's one-year return through April
30, 2000 was 20.93%. Its since-inception (on December 31, 1996) average annual
total return through April 30, 2000 was 20.21%. Effective November 1, 1999,
Peter T. Wen became Co-Portfolio Manager of the Fund. Susan L. Black, formerly
the Fund's Portfolio Manager, continues to serve as Co-Portfolio Manager.
MANAGER COMMENTARY
The period was a positive one for health-care stocks broadly, helped by a
supportive earnings outlook for the industry and by growing recognition of the
relatively attractive valuations offered by a number of health-care stocks. The
group was volatile, however, especially late in the period, reflecting general
market volatility as well as controversy regarding the sharing of genetic
research, which sparked a selloff in the biotechnology area (valuations on many
of these stocks had in fact become quite lofty).
We made no material changes to the Fund during the period in terms of basic
strategy, notwithstanding the Fund's name change. The change reflects our desire
to expand the list of investment opportunities available to the Fund in the
future. As stated in the Prospectus, the Fund will invest in at least three
countries, including the U.S. While the majority of health-sciences companies
are presently in the U.S., we are excited about the ability to invest in foreign
health-care stocks, and look forward to identifying and owning those we deem to
have good growth prospects. Our focus, across the market-cap spectrum, remained
on innovative companies with existing revenue-generating products as well as the
potential for successful product launches going forward.
We maintained a sizable weighting in large-cap pharmaceutical stocks. Our
favorable view on the long-term prospects for these companies is based on a
confluence of positive forces. Perhaps the most obvious is a rapidly maturing
population, not only in the U.S., but within Europe and Japan as well. As the
40-and-over population swells over the next decade (this demographic accounts
for the bulk of pharmaceutical sales), demand for pharmaceutical products should
rise considerably, even if another drug is never discovered. But the launch of
viable new products is all but inevitable, given substantial R&D budgets and the
exploration of the human gene, which stands to boost drug demand beyond the
increase attributable to demographics alone.
Another factor that stands to benefit pharmaceutical companies is merger &
acquisition activity. This trend has picked up of late, with several large deals
announced among major drug companies last year both in the U.S. and Europe. We
believe that consolidation activity in the drug industry will continue, if not
7
<PAGE>
WARBURG PINCUS GLOBAL HEALTH SCIENCES FUND
SEMIANNUAL INVESTMENT ADVISER'S REPORT -- APRIL 30, 2000 (CONT'D)
--------------------------------------------------------------------------------
accelerate, resulting in reduced excess capacity, lowered costs, more-effective
marketing strategies and expanded R&D commitments over time.
We also maintained exposure to smaller, more specialized pharmaceutical
companies, including one foreign name we added during the period. The company, a
leading provider of products and services based on neurology research, is
headquartered in Ireland and has research and manufacturing facilities in the
U.S. and Israel.
Turning to the biotechnology area, where we maintained a significant
weighting, the bulk of our focus remained on larger companies with existing and
"late stage" (i.e., potentially close to approval) products. The long-term
investment opportunities in the biotechnology area are compelling, given the
ongoing advances in gene research, a trend that stands to benefit these
companies via new-product discoveries and via "outsourcing" demand from large
drug companies.
We continued to generally avoid health-care "provider" companies, broadly
defined to include managed-care and hospital companies, reflecting our ongoing
concerns over the group's political/regulatory environment. That aside, we
continued to see value in certain stocks here, and our focus remained on
companies with relatively low debt and good cash flows. Elsewhere of note, we
maintained positions in specific manufacturers of medical devices (e.g., stents
and implantable defibrillators) whose stocks we deemed to be attractively
priced.
Looking ahead, our outlook on the longer-term prospects for health-care
stocks remains favorable, given the above-noted trends and the high degree of
innovation found within the health-care industry (we also believe, however, that
these stocks will be subject to frequent bouts of short-term volatility). As
ever, our efforts will remain focused on identifying stocks we deem to have the
best long-term growth potential.
Susan L. Black Peter T. Wen
Co-Portfolio Manager Co-Portfolio Manager
SINCE THE FUND FOCUSES ITS INVESTMENTS ON COMPANIES INVOLVED IN THE HEALTH
SCIENCES, AN INVESTMENT IN THE FUND MAY INVOLVE A GREATER DEGREE OF RISK THAN AN
INVESTMENT IN OTHER MUTUAL FUNDS THAT SEEK CAPITAL APPRECIATION BY INVESTING IN
A BROADER MIX OF ISSUERS. INTERNATIONAL INVESTING ENTAILS SPECIAL RISK
CONSIDERATIONS, INCLUDING CURRENCY FLUCTUATIONS, LOWER LIQUIDITY, ECONOMIC AND
POLITICAL RISKS, AND DIFFERENCES IN ACCOUNTING METHODS.
----------
* The Lipper Health/Biotechnology Funds Index is an equal-weighted performance
index, adjusted for capital-gain distributions and income dividends, of the
largest qualifying funds in this investment objective, and is compiled by
Lipper Inc.
** The S&P 500 Index is an unmanaged index (with no defined investment
objective) of common stocks, includes reinvestment of dividends, and is a
registered trademark of McGraw-Hill, Inc.
8
<PAGE>
WARBURG PINCUS BALANCED FUND
SCHEDULE OF INVESTMENTS--APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
-------- -----
COMMON STOCKS (56.5%)
AEROSPACE & DEFENSE (2.1%)
Honeywell International, Inc. 7,000 $ 392,000
Textron, Inc. 4,000 247,750
-----------
639,750
-----------
AGRICULTURE (0.4%)
Seminis, Inc. Class A+ 30,000 135,000
-----------
BANKS & SAVINGS & LOANS (4.2)%
Banc One Corp. 6,000 183,000
Chase Manhattan Corp. 4,300 309,869
Comerica, Inc. 6,000 254,250
Compass Bancshares, Inc. 7,550 139,675
Golden West Financial Corp. 6,000 204,750
Wells Fargo Co. 4,800 197,100
-----------
1,288,644
-----------
BUILDING & BUILDING MATERIALS (0.7%)
USG Corp.+ 5,300 221,275
-----------
CAPITAL EQUIPMENT (3.6%)
American Standard Cos., Inc.+ 8,600 352,600
Ingersoll-Rand Co. 4,100 192,444
ITT Industries, Inc. 8,000 252,500
Navistar International Corp.+ 5,400 189,000
Parker-Hannifin Corp. 2,200 102,300
-----------
1,088,844
-----------
COMMUNICATIONS & MEDIA (3.7%)
AMFM, Inc.+ 2,000 132,750
Comcast Corp. Class A 5,400 216,337
Go2Net, Inc.+ 3,000 178,500
Infinity Broadcasting, Inc.+ 8,750 296,953
Lamar Advertising Co. 2,300 101,344
PNV.net, Inc.+ 13,200 39,600
Time Warner, Inc. 1,600 143,900
-----------
1,109,384
-----------
COMPUTERS (3.0%)
Hewlett-Packard Co. 1,300 175,500
Microsoft Corp.+ 4,800 334,800
Sun Microsystems, Inc.+ 2,700 248,231
Unisys Corp.+ 6,000 139,125
-----------
897,656
-----------
CONGLOMERATES (2.1%)
General Electric Co. 1,400 220,150
United Technologies Corp. 6,500 404,219
-----------
624,369
-----------
See Accompanying Notes to Financial Statements.
9
<PAGE>
WARBURG PINCUS BALANCED FUND
SCHEDULE OF INVESTMENTS (CONT'D)--APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
-------- -----
COMMON STOCKS (CONT'D)
CONSUMER DURABLES (2.1%)
Ford Motor Co. 4,500 $ 246,094
Gentex Corp.+ 12,000 387,000
-----------
633,094
-----------
CONSUMER NON-DURABLES (2.3%)
Borg-Warner Automotive, Inc. 7,200 301,050
Clorox Co. 4,900 180,075
Procter & Gamble Co. 3,400 202,725
-----------
683,850
-----------
ELECTRONICS (3.1%)
Intel Corp. 4,000 507,250
Maxim Integrated Products, Inc.+ 5,200 337,025
Motorola, Inc. 900 107,156
-----------
951,431
-----------
ENERGY (2.0%)
Amerada Hess Corp. 2,000 127,250
Devon Energy Corp. 6,700 322,856
Kerr-McGee Corp. 3,000 155,250
-----------
605,356
-----------
FINANCIAL SERVICES (3.3%)
American General Corp. 3,900 218,400
Associates First Capital Corp. Class A 6,000 133,125
Fannie Mae 3,000 180,937
Labranche & Co., Inc.+ 14,000 167,125
Lehman Brothers Holdings, Inc. 1,300 106,681
MetLife, Inc. 11,000 182,187
-----------
988,455
-----------
FOOD, BEVERAGES & TOBACCO (1.5%)
General Mills, Inc. 6,200 225,525
Keebler Foods Co.+ 7,700 242,069
-----------
467,594
-----------
HEALTHCARE (1.3%)
Becton, Dickinson & Co. 6,800 174,250
Trigon Healthcare, Inc.+ 6,200 222,812
-----------
397,062
-----------
INDUSTRIAL MFG. & PROCESSING (3.4%)
Eaton Corp. 1,200 100,800
Johnson Controls, Inc. 2,100 132,956
SPX Corp. 3,700 406,537
Tyco International Ltd. 8,200 376,687
-----------
1,016,980
-----------
See Accompanying Notes to Financial Statements.
10
<PAGE>
WARBURG PINCUS BALANCED FUND
SCHEDULE OF INVESTMENTS (CONT'D)--APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
-------- -----
COMMON STOCKS (CONT'D)
OFFICE EQUIPMENT & SUPPLIES (0.5%)
Pitney Bowes, Inc. 4,000 $ 163,500
-----------
OIL SERVICES (2.0%)
Nabors Industries, Inc.+ 5,000 197,187
R & B Falcon Corp.+ 20,000 415,000
-----------
612,187
-----------
PHARMACEUTICALS (2.8%)
Lilly (Eli) & Co. 3,000 231,937
Pharmacia Corp. 4,999 249,638
Warner-Lambert Co. 3,100 352,819
-----------
834,394
-----------
RETAIL (3.1%)
Autonation, Inc. 30,500 278,312
Federated Department Stores, Inc.+ 4,700 159,800
May Department Stores Co. 8,850 243,375
Staples, Inc.+ 5,000 95,312
TJX Cos., Inc. 9,000 172,687
-----------
949,486
-----------
TELECOMMUNICATIONS & EQUIPMENT (8.8%)
ALLTEL Corp. 3,000 199,875
Bell Atlantic Corp. 5,800 343,650
BellSouth Corp. 2,000 97,375
Cabletron Systems, Inc. 8,000 183,000
Loral Space & Communications, Ltd.+ 8,000 78,500
MCI WorldCom, Inc.+ 6,600 299,887
NEXTLINK Communications, Inc. Class A+ 2,000 168,625
QUALCOMM, Inc.+ 1,600 173,500
Qwest Communications International, Inc.+ 6,500 281,938
SBC Communications, Inc. 6,700 293,544
Tellabs, Inc. 1,900 104,144
Time Warner Telecom, Inc. Class A+ 3,000 164,250
U S West, Inc. 700 49,831
Western Wireless Corp. Class A+ 4,400 218,625
-----------
2,656,744
-----------
TRANSPORTATION (0.5%)
Landstar Systems, Inc.+ 2,900 166,025
-----------
TOTAL COMMON STOCKS (Cost $14,954,729) 17,131,080
-----------
PREFERRED STOCKS (0.6%)
Emmis Communications Corp.
Series A (Convertible)
(Callable 10/15/02 @ $51.79)+
8.54% 2,000 114,000
Prologis Trust, Series C
(Callable 11/13/26 @ $50.00)
6.25% 2,000 77,956
-----------
TOTAL PREFERRED STOCKS (Cost $200,000)
191,956
-----------
See Accompanying Notes to Financial Statements.
11
<PAGE>
WARBURG PINCUS BALANCED FUND
SCHEDULE OF INVESTMENTS (CONT'D)--APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
-------- -----
FOREIGN STOCKS (3.3%)
FRANCE (1.0%)
Aventis SA ADR 2,350 $ 132,188
Total SA ADR 2,410 182,256
-----------
314,444
-----------
NETHERLANDS (1.2%)
Royal Dutch Petroleum Co. ADR 6,100 349,988
-----------
UNITED KINGDOM (1.1%)
BP Amoco PLC ADR
6,584 335,784
-----------
TOTAL FOREIGN STOCKS (Cost $768,495) $ 1,000,216
-----------
<TABLE>
<CAPTION>
RATINGS + PAR
(MOODY'S/S&P) RATE% MATURITY DATE (000) VALUE
------------- ------ ------------- ----- -------
<S> <C> <C> <C> <C> <C>
CORPORATE BONDS (8.9%)
Adelphia Communications (B1, B+) 9.375 11/15/09 $100 $ 94,000
Allied Waste North America Series B (B2, B+) 10.000 08/01/09 100 68,250
AT&T Capital Corp., Series MTNF (A1, A+) 6.600 05/15/05 210 198,450
Bayerische Landesbank Deposit Note Series O
(Callable 02/09/03 @ $100.00 )(Aaa, AAA) 6.200 02/09/06 350 326,813
Countrywide Home Loan Co. Series H (A3, A) 6.250 04/15/09 200 174,750
El Paso Energy Corp. (Baa2, BBB) 6.750 05/15/09 200 182,750
Federal-Mogul Corp. (Ba2, BB+) 7.375 01/15/06 150 122,250
First Union Corp. (Callable 04/15/08 @ $100.00,
Putable 04/15/08 @ $100.00) (A2, A-) 6.300 04/15/08 260 231,725
Household Finance Corp. (A2, A) 6.500 11/15/08 345 313,088
K-Mart Corp. (Baa3, BB+) 8.375 12/01/04 100 97,375
Lehman Brothers Holdings (A3, A) 7.750 01/15/05 80 78,800
Level 3 Communications, Inc. Senior Notes(B3, B) 9.125 05/01/08 100 87,500
Lowe's Companies (A2, A) 7.110 05/15/07 160 158,600
Philip Morris Co., Inc. Notes (A2, A) 6.800 12/01/03 130 121,550
Potomac Electric Power (A1, A) 8.500 05/15/27 150 146,063
Safeway Inc. Senior Notes (Callable @ Make
Whole +12.5BP) (Baa2, BBB) 7.250 09/15/04 200 195,000
Saks, Inc. (Baa3, BB+) 7.000 07/15/04 100 92,625
------------
TOTAL CORPORATE BONDS (Cost $2,920,330) 2,689,589
------------
</TABLE>
See Accompanying Notes to Financial Statements.
12
<PAGE>
WARBURG PINCUS BALANCED FUND
SCHEDULE OF INVESTMENTS (CONT'D)--APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS + PAR
(MOODY'S/S&P) RATE% MATURITY DATE (000) VALUE
------------- ------ ------------- ----- -------
<S> <C> <C> <C> <C> <C>
MORTGAGE & ASSET BACKED SECURITIES (11.9%)
Amresco Commercial Mortgage Funding I,
Series 1997-C1, Class A1 (Aaa, AAA) 6.730 06/17/29 $432 $ 422,379
California Infrastructure Pacific Gas and Electric,
Series 97-1, Class A7 (NR, NR) 6.420 09/25/08 70 67,230
Commonwealth Edison Transitional Funding Trust,
Series 1998-1, Cl-A6 (Aaa, AAA) 5.630 06/25/09 200 181,963
Freddie Mac, Series 2072, Class Pk (Aaa, AAA) 6.000 07/15/24 665 637,879
GE Capital Mortgage Services, Inc.,
Series 1994-7, Class A10 (NR, NR) 6.000 02/25/09 460 444,003
General Motors Acceptance Corp. Class A2-98 (Aaa, AAA) 6.700 03/15/08 500 467,993
Ginnie Mae Pass Through Pool #002217X (Aaa, AAA) 6.500 08/15/03 4 3,559
MBNA Master Credit Card Trust,
Series 1997-I, Class A (NR, NR) 6.550 01/15/07 300 291,225
Mellon Residential Funding (NR, NR) 5.610 10/25/28 720 723,263
Morgan Stanley Mortgage Trust
Series 40, Class 8 (NR, AAA) 7.000 07/20/21 368 362,247
------------
TOTAL MORTGAGE & ASSET BACKED SECURITIES
(Cost $3,716,205) 3,601,741
------------
U.S. AGENCY OBLIGATIONS (11.0%)
Fannie Mae (Aaa, AAA) 5.690 12/01/08 344 304,952
Fannie Mae (Aaa, AAA) 7.000 12/01/29 405 387,289
Fannie Mae (Aaa, AAA) 7.500 12/01/29 395 386,431
Fannie Mae (Aaa, AAA) 8.000 03/01/30 385 384,406
Fannie Mae (Aaa, AAA) 7.500 03/01/30 400 391,295
Fannie Mae N98512 (Aaa, AAA) 6.000 08/01/06 486 460,916
Fannie Mae, Series 1998-M4,
Class B REMIC 98-M4 (Aaa, AAA) 6.424 12/25/23 600 570,825
Fannie Mae Pool #518303 (Aaa, AAA) 6.500 10/01/29 250 233,414
Ginnie Mae Pool #505682 (Aaa, AAA) 6.500 06/15/29 243 227,484
------------
TOTAL U.S. AGENCY OBLIGATIONS (Cost $3,437,053) 3,347,012
------------
U.S.TREASURY OBLIGATIONS (5.4%)
U.S. Treasury Bond (Aaa, AAA) 9.250 02/15/16 405 521,923
U.S. Treasury Bond (Aaa, AAA) 8.000 11/15/21 715 861,021
U.S. Treasury Note (Aaa, AAA) 6.125 08/15/07 270 264,774
------------
TOTAL U.S. TREASURY OBLIGATIONS (Cost $1,622,341) 1,647,718
------------
</TABLE>
See Accompanying Notes to Financial Statements.
13
<PAGE>
WARBURG PINCUS BALANCED FUND
SCHEDULE OF INVESTMENTS (CONT'D)--APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
-------- -----
SHORT TERM INVESTMENT (3.0%)
RBB Money Market Portfolio
(Cost $897,212) 897,212 $ 897,212
-----------
TOTAL INVESTMENTS AT VALUE (100.6%) (Cost $28,516,365*) 30,506,524
LIABILITIES IN EXCESS OF OTHER ASSETS (-0.6%) (168,172)
-----------
NET ASSETS (100.0%) $30,338,352
===========
INVESTMENT ABBREVIATIONS
ADR = American Depository Receipt
NR = Not Rated
REMIC = Real Estate Mortgage Investment Conduit
--------------------------------------------------------------------------------
+ Non-income producing security.
* Cost for federal income tax purposes is $28,525,483.
+ Credit Ratings by Moody's Investors Services Inc. and Standard & Poors Ratings
Group are unaudited.
See Accompanying Notes to Financial Statements.
14
<PAGE>
WARBURG PINCUS VALUE FUND
SCHEDULE OF INVESTMENTS--APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
-------- -----
COMMON STOCKS (96.3%)
AEROSPACE & DEFENSE (3.1%)
Boeing Co. 50,000 $ 1,984,375
Honeywell International, Inc. 129,400 7,246,400
Textron, Inc. 31,000 1,920,063
------------
11,150,838
------------
BANKS & SAVINGS & LOANS (8.4%)
AmSouth Bancorp 145,502 2,118,873
Banc One Corp. 107,600 3,281,800
Chase Manhattan Corp. 26,700 1,924,069
Comerica, Inc.+ 183,400 7,771,575
Compass Bancshares, Inc. 165,300 3,058,050
Golden West Financial Corp. 97,900 3,340,837
Wachovia Corp. 85,300 5,347,244
Wells Fargo Co. 97,000 3,983,062
------------
30,825,510
------------
BUILDING & BUILDING MATERIALS (1.5%)
USG Corp. 132,700 5,540,225
------------
BUSINESS SERVICES (0.7%)
Reynolds & Reynolds Co. 108,200 2,569,750
------------
CAPITAL EQUIPMENT (7.8%)
American Standard Companies+ 158,400 6,494,400
Emerson Electric Co. 67,200 3,687,600
Ingersoll-Rand Co. 154,700 7,261,231
ITT Industries, Inc. 111,600 3,522,375
Navistar International Corp.+ 84,500 2,957,500
Parker-Hannifin Corp. 102,600 4,770,900
------------
28,694,006
------------
CHEMICALS (0.3%)
C.K. Witco Corp. 100,000 1,175,000
------------
COMMUNICATIONS & MEDIA (2.1%)
Comcast Corp. Class A 72,000 2,884,500
New York Times Co. Class A 115,400 4,753,037
------------
7,637,537
------------
COMPUTERS (3.1%)
COMPAQ Computer Corp.+ 65,000 1,901,250
Hewlett-Packard Co. 26,900 3,631,500
Unisys Corp.+ 246,200 5,708,762
------------
11,241,512
------------
CONGLOMERATES (1.4%)
Harsco Corp. 175,300 5,204,219
------------
See Accompanying Notes to Financial Statements.
15
<PAGE>
WARBURG PINCUS VALUE FUND
SCHEDULE OF INVESTMENTS (CONT'D)--APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
-------- -----
COMMON STOCKS (CONT'D)
CONSUMER DURABLES (2.1%)
Ford Motor Co. 142,700 $ 7,803,906
------------
CONSUMER NON-DURABLES (0.6%)
Borg-Warner Automotive, Inc. 56,600 2,366,587
------------
ENERGY (14.7%)
Amerada Hess Corp. 106,200 6,756,975
BP Amoco PLC Sponsored ADR 233 11,887,794
Devon Energy Corp. 131,500 6,336,656
Exxon Mobil Corp. 120,200 9,338,037
Kerr-McGee Corp. 68,700 3,555,225
Royal Dutch Petroleum Co. ADR 88,900 5,100,637
Total Fina SA ADR 90,600 6,851,625
Union Pacific Resources Group, Inc. 199,100 3,820,231
------------
53,647,180
------------
FINANCIAL SERVICES (7.2%)
American General Corp. 55,900 3,130,400
Associates First Capital Corp. Class A 175,200 3,887,250
Fannie Mae 83,800 5,054,188
Labranche & Co., Inc.+ 124,100 1,481,444
Lehman Brothers Holdings, Inc. 118,000 9,683,375
MetLife, Inc. 182,000 3,014,375
------------
26,251,032
------------
FOOD, BEVERAGES & TOBACCO (5.1%)
Anheuser-Busch Companies, Inc. 17,300 1,220,731
General Mills, Inc. 173,600 6,314,700
Keebler Foods Co. 247,700 7,787,069
Quaker Oats Co. 49,700 3,239,819
------------
18,562,319
------------
HEALTHCARE (4.1%)
Baxter International, Inc. 76,700 4,995,088
Becton, Dickinson & Co. 189,800 4,863,625
Trigon Healthcare, Inc.+ 146,500 5,264,844
------------
15,123,557
------------
INDUSTRIAL MFG. & PROCESSING (4.8%)
Eaton Corp. 57,000 4,788,000
Johnson Controls, Inc. 58,500 3,703,781
Minnesota Mining & Manufacturing Co. 40,400 3,494,600
Tyco International Ltd. 117,100 5,379,281
------------
17,365,662
------------
See Accompanying Notes to Financial Statements.
16
<PAGE>
WARBURG PINCUS VALUE FUND
SCHEDULE OF INVESTMENTS (CONT'D)--APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
-------- -----
COMMON STOCKS (CONT'D)
OFFICE EQUIPMENT & SUPPLIES (1.0%)
Pitney Bowes, Inc. 87,200 $ 3,564,300
------------
OIL SERVICES (4.2%)
Nabors Industries, Inc.+ 95,500 3,766,281
Pride International, Inc. 195,700 4,427,713
R & B Falcon Corp. 347,800 7,216,850
------------
15,410,844
------------
PHARMACEUTICALS (5.3%)
American Home Products Corp. 66,100 3,713,994
Aventis SA ADR 64,386 3,621,713
Lilly (Eli) & Co. 97,500 7,537,969
Pharmacia Corp. 87,542 4,371,629
------------
19,245,305
------------
RETAIL (8.4%)
Federated Department Stores, Inc.+ 125,100 4,253,400
May Department Stores Co. 255,100 7,015,250
Ross Stores, Inc. 223,200 4,631,400
Safeway, Inc. 102,400 4,518,400
TJX Companies, Inc. 268,000 5,142,250
Toys R Us, Inc.+ 335,600 5,117,900
------------
30,678,600
------------
TELECOMMUNICATIONS & EQUIPMENT (8.3%)
ALLTEL Corp. 58,000 3,864,250
AT&T Corp. 120,300 5,616,506
Bell Atlantic Corp. 102,100 6,049,425
Harris Corp. 47,500 1,534,844
MCI WorldCom, Inc.+ 127,900 5,811,456
SBC Communications, Inc. 175,049 7,669,334
------------
30,545,815
------------
TRANSPORTATION (0.5%)
Burlington Northern Santa Fe Corp. 81,200 1,958,950
------------
UTILITIES - ELECTRIC (1.6%)
Allegheny Energy, Inc. 123,500 3,751,313
American Electric Power Co., Inc. 54,800 2,007,050
------------
5,758,363
------------
TOTAL COMMON STOCKS (Cost $312,023,336) 352,321,017
------------
See Accompanying Notes to Financial Statements.
17
<PAGE>
WARBURG PINCUS VALUE FUND
SCHEDULE OF INVESTMENTS (CONT'D)--APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
-------- -----
CONVERTIBLE PREFERRED STOCK (0.6%)
REAL ESTATE (0.6%)
Equity Residential Properties Series G 7.25%,
Perpetual Convertible (Callable 09/15/02 @ $25.91)
(Cost $2,512,171) 101,000 $ 2,209,375
------------
SHORT TERM INVESTMENT (2.8%)
RBB Money Market Portfolio
(Cost $10,363,440) 10,363,440 10,363,440
------------
TOTAL INVESTMENTS AT VALUE (99.7%)
(Cost $324,898,947*) 364,893,832
OTHER ASSETS IN EXCESS OF LIABILITIES (0.3%) 1,080,065
------------
NET ASSETS (100.0%) $365,973,897
============
INVESTMENT ABBREVIATIONS
ADR = American Depository Receipt
--------------------------------------------------------------------------------
+ Non-income producing security.
* Cost for federal income tax purposes is $324,923,182.
See Accompanying Notes to Financial Statements.
18
<PAGE>
WARBURG PINCUS CAPITAL APPRECIATION FUND
SCHEDULE OF INVESTMENTS--APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
-------- -----
COMMON STOCKS (89.1%)
BANKS & SAVINGS & LOANS (4.4%)
Citigroup, Inc. 743,400 $ 44,185,837
Northern Trust Corp. 319,700 20,500,762
--------------
64,686,599
--------------
BUSINESS SERVICES (0.7%)
Omnicom Group, Inc. 108,000 9,834,750
--------------
COMMUNICATIONS & MEDIA (10.7%)
AT&T Wireless Group+ 209,100 6,651,994
AT&T Corp. - Liberty Media-A+ 882,400 44,064,850
CBS Corp. 503,680 29,591,200
Comcast Corp. Class A+ 73,700 2,874,300
Comcast Corp. Special Class A+ Non-Voting 304,000 12,179,000
Crown Castle International Corp. 187,900 7,210,662
Hispanic Broadcasting Corp.+ 84,200 8,509,462
Infinity Broadcasting, Inc.+ 363,900 12,349,856
News Ltd., ADR 285,100 14,664,831
Time Warner, Inc. 143,100 12,870,056
Westwood One, Inc.+ 239,000 8,454,625
--------------
159,420,836
--------------
COMPUTERS (10.5%)
Citrix Systems, Inc.+ 242,600 14,813,762
EMC Corp.+ 159,200 22,118,850
Hewlett-Packard Co. 97,600 13,176,000
Microsoft Corp.+ 618,300 43,126,425
Oracle Systems Corp.+ 426,900 34,125,319
Sun Microsystems, Inc.+ 273,000 25,098,937
Veritas Software Corp.+ 34,700 3,722,117
--------------
156,181,410
--------------
CONGLOMERATES (2.6%)
General Electric Co. 214,400 33,714,400
TRW, Inc. 84,900 4,966,650
--------------
38,681,050
--------------
ELECTRONICS (13.8%)
Applied Materials, Inc.+ 229,800 23,396,512
Flextronics International Ltd.+ 207,200 14,555,800
Intel Corp. 269,700 34,201,331
JDS Uniphase Corp.+ 149,800 15,541,750
KLA-Tencor Corp.+ 132,200 9,898,475
Lexmark International Group, Inc. Class A+ 23,900 2,820,200
LSI Logic Corp.+ 229,600 14,350,000
Maxim Integrated Products, Inc.+ 282,700 18,322,494
Motorola, Inc. 151,500 18,037,969
Sanmina Corp.+ 249,400 14,979,587
See Accompanying Notes to Financial Statements.
19
<PAGE>
WARBURG PINCUS CAPITAL APPRECIATION FUND
SCHEDULE OF INVESTMENTS (CONT'D)--APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
-------- -----
COMMON STOCKS (CONT'D)
ELECTRONICS (cont'd)
Texas Instruments, Inc. 140,100 $ 22,818,787
Xilinx, Inc.+ 223,000 16,334,750
--------------
205,257,655
--------------
ENERGY (5.5%)
Apache Corp. 329,100 15,940,781
Bonneville Pacific Corp.+ 16,883 0
BP Amoco PLC ADR 398,700 20,333,700
Devon Energy Corp. 414,200 19,959,263
Exxon Mobil Corp. 332,900 25,862,169
--------------
82,095,913
--------------
FINANCIAL SERVICES (4.9%)
American Express Co. 91,700 13,760,731
American International Group, Inc. 147,625 16,192,617
Freddie Mac 253,400 11,640,563
Lehman Brothers Holdings, Inc. 222,200 18,234,288
Morgan Stanley, Dean Witter, & Co. 178,500 13,699,875
--------------
73,528,074
--------------
HEALTHCARE (1.4%)
Guidant Corp. 133,700 7,671,038
PE Corp.- PE Biosystems Group 219,800 13,188,000
--------------
20,859,038
--------------
INDUSTRIAL MANUFACTURING & PROCESSING (2.8%)
Corning, Inc. 76,700 15,148,250
Nortel Networks Corp. 229,000 25,934,250
--------------
41,082,500
--------------
LEISURE & ENTERTAINMENT (0.5%)
Walt Disney Co. 171,700 7,436,756
--------------
OIL SERVICES (2.1%)
Cooper Cameron Corp.+ 153,700 11,527,500
Nabors Industries, Inc.+ 258,400 10,190,650
Noble Drilling Corp.+ 247,700 9,892,519
--------------
31,610,669
--------------
PHARMACEUTICALS (8.0%)
Amgen, Inc.+ 118,600 6,641,600
Bristol-Myers Squibb Co. 143,900 7,545,756
Elan Corp. PLC ADR+ 292,800 12,553,800
Genentech, Inc.+ 101,800 11,910,600
Pharmacia Corp. 751,128 37,509,455
Warner Lambert Co. 379,400 43,180,463
--------------
119,341,674
--------------
See Accompanying Notes to Financial Statements.
20
<PAGE>
WARBURG PINCUS CAPITAL APPRECIATION FUND
SCHEDULE OF INVESTMENTS (CONT'D)--APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
-------- -----
COMMON STOCKS (CONT'D)
PUBLISHING (0.5%)
Reader's Digest Assn., Inc. Class A 243,300 $ 7,785,600
--------------
RETAIL (3.0%)
Home Depot, Inc. 236,650 13,267,191
Safeway, Inc.+ 264,300 11,662,238
Wal-Mart Stores, Inc. 362,800 20,090,050
--------------
45,019,479
--------------
TELECOMMUNICATIONS & EQUIPMENT (17.5%)
American Tower Corp., Class A 198,800 9,244,200
CIENA Corp.+ 123,300 15,242,963
Cisco Systems, Inc.+ 780,800 54,131,400
EchoStar Communications Corp.+ 294,600 18,762,338
Lucent Technologies, Inc. 251,600 15,646,375
Metromedia Fiber Network, Inc. Class A+ 434,000 13,399,750
Nextel Communications, Inc. Class A+ 187,100 20,475,756
Nokia Corp. Sponsored ADR 201,600 11,466,000
NTL, Inc.+ 137,150 10,491,975
QUALCOMM Inc.+ 102,300 11,093,156
Qwest Communications International, Inc.+ 319,800 13,871,325
Telecom Italia Spa - ADR+ 46,100 6,586,538
Vodafone Group PLC - ADR (United Kingdom) 707,700 33,261,900
VoiceStream Wireless Corp.+ 211,754 20,963,646
Western Wireless Corp. Class A+ 110,200 5,475,563
--------------
260,112,885
--------------
TRANSPORTATION (0.2%)
Kansas City Southern Industries, Inc. 47,900 3,442,813
--------------
TOTAL COMMON STOCKS (Cost $871,708,632) 1,326,377,701
--------------
PREFERRED STOCK (0.0%)
Fresenius National Medical, Inc. Class D+
(Cost $18,553) 90,000 2,700
--------------
SHORT TERM INVESTMENTS (12.4%)
Institutional Money Market Trust 112,749,054 112,749,054
RBB Money Market Fund 71,854,327 71,854,327
--------------
TOTAL SHORT TERM INVESTMENTS (Cost $184,603,381) 184,603,381
--------------
TOTAL INVESTMENTS AT VALUE (101.5%)
(Cost $1,056,330,566*) 1,510,983,782
LIABILITIES IN EXCESS OF OTHER ASSETS (1.5%) (23,003,959)
--------------
NET ASSETS (100.0%) $1,487,979,823
==============
INVESTMENT ABBREVIATIONS
ADR = American Depository Receipt
--------------------------------------------------------------------------------
+ Non-income producing security.
* Costs for federal income tax purposes is $1,057,450,525.
See Accompanying Notes to Financial Statements.
21
<PAGE>
WARBURG PINCUS GLOBAL HEALTH SCIENCES FUND
SCHEDULE OF INVESTMENTS -- APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
-------- -----
COMMON STOCKS (94.5%)
HEALTHCARE (28.3%)
Affymetrix, Inc.+ 6,900 $ 931,931
ALZA Corp.+ 32,200 1,418,812
Baxter International, Inc. 16,000 1,042,000
Edwards Lifesciences Corp.+ 2,480 37,200
Genzyme Surgical Products Corp.+ 1,861 15,935
Guidant Corp. 20,600 1,181,925
Health Management Associates, Inc. Class A+ 150,000 2,390,625
Hooper Holmes, Inc. 161,800 2,811,275
Inhale Therapeutic Systems , Inc.+ 6,300 389,812
Medtronic, Inc. 35,100 1,823,006
PE Corp. - PE Biosystems Group 23,400 1,404,000
Sequenom, Inc.+ 9,000 218,250
Tenet Healthcare Corp.+ 21,500 548,250
UnitedHealth Group Inc. 9,500 633,531
-----------
14,846,552
-----------
INDUSTRIAL MANUFACTURING & PROCESSING (2.3%)
Waters Corp.+ 12,700 1,206,500
-----------
PHARMACEUTICALS (63.9%)
Aclara Biosciences, Inc.+ 17,500 667,187
Alkermes, Inc.+ 9,600 511,200
Allos Therapeutics Inc.+ 24,400 262,300
Alpharma , Inc. Class A 34,300 1,324,838
American Home Products Corp. 14,000 786,625
Amgen, Inc.+ 16,800 940,800
Bristol-Myers Squibb Co. 32,800 1,719,950
Cardinal Health, Inc. 20,600 1,134,288
Celgene Corp.+ 14,400 677,700
Elan Corp. PLC ADR+ 21,000 900,375
Forest Laboratories, Inc.+ 21,800 1,832,563
Gene Logic, Inc.+ 19,800 532,125
Genentech, Inc.+ 16,000 1,872,000
Genzyme Corp.+ 18,600 907,913
Gilead Sciences, Inc.+ 15,700 850,744
IDEC Pharmaceuticals Corp.+ 20,000 1,280,000
Immunex Corp.+ 32,100 1,263,938
Lilly (Eli) & Co. 16,700 1,291,119
Medimmune, Inc.+ 5,900 943,631
Merck & Co., Inc. 9,000 625,500
Pfizer, Inc. 21,200 893,050
Pharmacia Corp. 43,197 2,157,150
Progenics Pharmaceuticals, Inc.+ 8,700 400,200
QLT PhotoTherapeutics, Inc.+ 22,100 1,227,931
Schering-Plough Corp. 18,900 761,906
Sepracor, Inc.+ 7,000 644,000
See Accompanying Notes to Financial Statements.
22
<PAGE>
WARBURG PINCUS GLOBAL HEALTH SCIENCES FUND
SCHEDULE OF INVESTMENTS -- APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
-------- -----
COMMON STOCKS (CONT'D)
PHARMACEUTICALS (cont'd)
Teva Pharmaceutical Industries, Ltd. PLC ADR 21,200 $932,800
Texas Biotechnology Corp.+ 38,900 476,525
Vertex Pharmaceuticals, Inc.+ 22,600 1,180,850
Warner-Lambert Co. 27,100 3,084,319
Watson Pharmaceuticals, Inc.+ 32,000 1,438,000
-----------
33,521,527
-----------
TOTAL COMMON STOCKS (Cost $35,818,922) 49,574,579
-----------
SHORT TERM INVESTMENTS (5.8%)
Institutional Money Market Trust 567,197 567,197
RBB Money Market Fund 2,482,299 2,482,299
-----------
TOTAL SHORT TERM INVESTMENTS (Cost $3,049,496) 3,049,496
-----------
TOTAL INVESTMENTS AT VALUE (100.3%) (Cost $38,868,418*) 52,624,075
LIABILITIES IN EXCESS OF OTHER ASSETS (-0.3%) (178,369)
-----------
NET ASSETS (100.0%) $52,445,706
===========
INVESTMENT ABBREVIATIONS
ADR = American Depository Receipt
--------------------------------------------------------------------------------
+ Non-income producing security.
* Costs for federal income tax purposes is $38,943,164.
See Accompanying Notes to Financial Statements.
23
<PAGE>
WARBURG PINCUS DOMESTIC EQUITY FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
WARBURG PINCUS WARBURG PINCUS WARBURG PINCUS WARBURG PINCUS
BALANCED VALUE CAPITAL APPRECIATION GLOBAL HEALTH
FUND FUND FUND SCIENCES FUND
-------------- -------------- -------------------- ---------------
<S> <C> <C> <C> <C>
ASSETS
Investment at value (Cost - $28,516,365,
$324,898,947, $1,056,330,566 and
$38,868,418, respectively) $30,506,524 $364,893,832 $1,510,983,782 $52,624,075
Receivable from adviser 0 0 0 10,449
Receivable for investment securities sold 283,296 4,059,085 3,482,759 0
Receivable for fund shares sold 4,840 1,707 1,862,101 91,104
Deferred organizational/offering costs 0 0 0 11,314
Dividends, interest, and reclaim receivable 161,925 370,504 1,045,467 29,453
Prepaid expenses and other assets 28,850 50,220 38,149 16,549
----------- ------------ -------------- -----------
Total Assets 30,985,435 369,375,348 1,517,412,258 52,782,944
----------- ------------ -------------- -----------
LIABILITIES
Advisory fee payable 15,807 226,237 851,791 41,873
Administration fee payable 2,502 75,412 222,668 4,355
Shareholder servicing fee payable 2,689 21,923 57,460 10,888
Payable for investment purchases 576,525 2,542,825 27,893,908 225,700
Payable for fund shares redeemed 0 0 65,291 0
Accrued expenses payable 49,560 535,054 341,317 54,422
----------- ------------ -------------- -----------
Total Liabilities 647,083 3,401,451 29,432,435 337,238
----------- ------------ -------------- -----------
NET ASSETS
Capital Stock, .001 par value 2,330 23,456 48,464 2,843
Paid-in Capital 25,298,952 298,259,259 880,096,157 34,648,751
Accumulated undistributed net
investment income (loss) 52,495 (166,955) (1,857,546) (235,086)
Accumulated net realized gain from
security transactions 2,994,485 27,863,251 155,039,532 4,273,541
Net unrealized appreciation
from investments 1,990,090 39,994,886 454,653,216 13,755,657
----------- ------------ -------------- -----------
Net Assets $30,338,352 $365,973,897 $1,487,979,823 $52,445,706
=========== ============ ============== ===========
COMMON SHARES
Net Assets $30,167,823 $312,722,269 $1,451,260,156 $52,445,706
----------- ------------ -------------- -----------
Shares outstanding 2,316,237 21,786,170 47,341,622 3,016,106
----------- ------------ -------------- -----------
Net asset value, offering price and
redemption price per share $ 13.02 $ 14.35 $ 30.66 $17.39
=========== ============ ============== ===========
ADVISOR SHARES
Net Assets $ 170,529 $ 53,251,628 $ 36,719,667
----------- ------------ --------------
Shares outstanding 13,098 3,710,803 1,222,394
----------- ------------ --------------
Net asset value, offering price
and redemption price per share $ 13.02 $ 14.35 $ 30.04
=========== ============ ==============
</TABLE>
24 & 25
<PAGE>
WARBURG PINCUS DOMESTIC EQUITY FUNDS
STATEMENTS OF OPERATIONS
For the Six Months Ended April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
WARBURG PINCUS WARBURG PINCUS
BALANCED VALUE
FUND FUND
-------------- --------------
<S> <C> <C>
INVESTMENT INCOME:
Dividends $ 100,003 $ 3,666,771
Interest 423,193 228,225
Foriegn Taxes Withheld (364) 0
---------- ------------
Total investment income 522,832 3,894,996
---------- ------------
EXPENSES:
Investment advisory fees 140,158 1,690,984
Administrative services fees 43,577 558,861
Audit fees 5,787 15,148
Custodian/Sub-custodian fees 8,348 53,182
Directors/Trustees fees 6,309 7,325
Insurance fees 408 5,702
Interest expense 33 14,937
Legal fees 5,098 24,304
Offering /Organizational costs 0 0
Printing fees 11,167 53,450
Registration fees 15,518 26,215
Shareholder servicing/distribution fees 39,195 143,770
Transfer agent fees 26,786 363,409
Miscellaneous fees 1,178 14,087
---------- ------------
303,562 2,971,374
Less: fees waived and transfer agent fee offsets (93,062) (60,872)
---------- ------------
Total expenses 210,500 2,910,502
---------- ------------
Net investment income (loss) 312,332 984,494
---------- ------------
NET REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS AND
FOREIGN CURRENCY RELATED ITEMS:
Net realized gain from investments 3,017,230 28,254,191
Net realized loss from foreign currency related items 0 (11,315)
Net change in unrealized appreciation/depreciation from
investments (1,155,219) (49,540,292)
---------- ------------
Net realized and unrealized gain (loss) from investments 1,862,011 (21,297,416)
---------- ------------
Net increase (decrease) in net assets resulting from operations $2,174,343 $(20,312,922)
========== ============
</TABLE>
See Accompanying Notes to Financial Statements.
26
<PAGE>
WARBURG PINCUS DOMESTIC EQUITY FUNDS
STATEMENTS OF OPERATIONS
For the Six Months Ended April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
WARBURG PINCUS
WARBURG PINCUS GLOBAL HEALTH
CAPITAL APPRECIATION SCIENCES
FUND FUND
-------------------- --------------
<S> <C> <C>
INVESTMENT INCOME:
Dividends $ 2,169,993 $ 111,270
Interest 2,418,042 75,159
Foriegn Taxes Withheld (13,884) 0
------------ ----------
Total investment income 4,574,151 186,429
------------ ----------
EXPENSES:
Investment advisory fees 4,644,573 265,103
Administrative services fees 1,222,974 54,151
Audit fees 15,740 6,278
Custodian/Sub-custodian fees 107,062 7,075
Directors/Trustees fees 7,300 6,422
Insurance fees 41 662
Interest fees 1,456 390
Legal fees 28,848 7,363
Offering /Organizational costs 0 2,948
Printing fees 58,076 6,859
Registration fees 45,967 15,500
Shareholder servicing/distribution fees 82,652 66,276
Transfer agent fees 403,496 51,527
Miscellaneous fees 9,484 4,784
------------ ----------
6,627,669 495,338
Less: fees waived and transfer agent fee offsets (195,972) (73,823)
------------ ----------
Total expenses 6,431,697 421,515
------------ ----------
Net investment loss (1,857,546) (235,086)
------------ ----------
NET REALIZED AND UNREALIZED GAIN FROM INVESTMENTS AND
FORIEGN CURRENCY RELATED ITEMS:
Net realized gain from investments 156,805,035 4,518,138
Net change in unrealized appreciation from investments 168,865,653 2,035,467
------------ ----------
Net realized and unrealized gain from investments 325,670,688 6,553,605
------------ ----------
Net increase in net assets resulting from operations $323,813,142 $6,318,519
============ ==========
</TABLE>
See Accompanying Notes to Financial Statements.
27
<PAGE>
WARBURG PINCUS DOMESTIC EQUITY FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
WARBURG PINCUS
BALANCED FUND
--------------------------------
FOR THE
SIX MONTHS FOR THE YEAR
ENDED ENDED
APRIL 30, 2000 OCTOBER 31,
(UNAUDITED) 1999
-------------- ------------
<S> <C> <C>
FROM OPERATIONS:
Net investment income (loss) $ 312,332 $ 667,389
Net realized gain from security transactions 3,017,230 4,039,738
Net realized loss from foreign currency related items 0 (577)
Net change in unrealized appreciation (depreciation) from
investments (1,155,219) (264,449)
------------ ------------
Net increase (decrease) in net assets resulting from operations 2,174,343 4,442,101
------------ ------------
FROM DIVIDENDS AND DISTRIBUTIONS:
Dividends from net investment income:
Common Class shares (308,959) (693,463)
Advisor Class shares (1,180) (3,960)
Distributions from net realized gains:
Common Class shares (3,994,517) (2,782,788)
Advisor Class shares (27,294) (16,488)
------------ ------------
Net decrease in net assets from dividends and distributions (4,331,950) (3,496,699)
------------ ------------
FROM CAPITAL SHARE TRANSACTIONS:
Proceeds from sale of shares 6,367,353 7,292,072
Reinvestment of dividends and distributions 4,009,491 3,342,592
Net asset value of shares redeemed (10,951,823) (14,218,841)
------------ ------------
Net increase (decrease) in net assets from capital share
transactions (574,979) (3,584,177)
------------ ------------
Net increase (decrease) in net assets (2,732,586) (2,638,775)
NET ASSETS:
Beginning of period 33,070,938 35,709,713
------------ ------------
End of period $ 30,338,352 $ 33,070,938
============ ============
Undistributed net investment income (loss): $ 52,495 $ 50,302
============ ============
</TABLE>
<TABLE>
<CAPTION>
WARBURG PINCUS
VALUE FUND
-------------------------------------
FOR THE FOR THE
SIX MONTHS FOR THE YEAR
ENDED ENDED
APRIL 30, 2000 OCTOBER 31,
(UNAUDITED) 1999
-------------- ---------------
<S> <C> <C>
FROM OPERATIONS:
Net investment income (loss) $ 984,494 $ 4,505,022
Net realized gain from security transactions 28,254,191 119,380,196
Net realized loss from foreign currency related items (11,315) (1,126)
Net change in unrealized appreciation (depreciation) from
investments (49,540,292) (7,555,427)
------------ ---------------
Net increase (decrease) in net assets resulting from operations (20,312,922) 116,328,665
------------ ---------------
FROM DIVIDENDS AND DISTRIBUTIONS:
Dividends from net investment income:
Common Class shares (1,213,946) (4,530,686)
Advisor Class shares (32,214) (156,348)
Distributions from net realized gains:
Common Class shares (103,988,288) (21,637,029)
Advisor Class shares (14,935,526) (2,951,282)
------------ ---------------
Net decrease in net assets from dividends and distributions (120,169,974) (29,275,345)
------------ ---------------
FROM CAPITAL SHARE TRANSACTIONS:
Proceeds from sale of shares 46,234,947 205,453,087
Reinvestment of dividends and distributions 116,962,972 28,469,978
Net asset value of shares redeemed (330,595,326) (447,327,821)
------------ ---------------
Net increase (decrease) in net assets from capital share
transactions (167,397,407) (213,404,756)
------------ ---------------
Net increase (decrease) in net assets (307,880,303) (126,351,436)
NET ASSETS:
Beginning of period 673,854,200 800,205,636
------------ ---------------
End of period $365,973,897 $ 673,854,200
============ ===============
Undistributed net investment income (loss): $ (166,955) $ 94,711
============ ===============
</TABLE>
<TABLE>
<CAPTION>
WARBURG PINCUS
CAPITAL APPRECIATION FUND
------------------------------------
FOR THE
SIX MONTHS FOR THE YEAR
ENDED ENDED
APRIL 30, 2000 OCTOBER 31,
(UNAUDITED) 1999
-------------- --------------
<S> <C> <C>
FROM OPERATIONS:
Net investment income (loss) $ (1,857,546) $ (2,181,859)
Net realized gain from security transactions 156,805,035 120,985,252
Net realized loss from foreign currency related items 0 0
Net change in unrealized appreciation (depreciation) from
investments 168,865,653 146,455,307
-------------- --------------
Net increase (decrease) in net assets resulting from operations 323,813,142 265,258,700
-------------- --------------
FROM DIVIDENDS AND DISTRIBUTIONS:
Dividends from net investment income:
Common Class shares 0 (220,220)
Advisor Class shares 0 0
Distributions from net realized gains:
Common Class shares (114,581,024) (29,615,988)
Advisor Class shares (2,730,915) (1,286,536)
-------------- --------------
Net decrease in net assets from dividends and distributions (117,311,939) (31,122,744)
-------------- --------------
FROM CAPITAL SHARE TRANSACTIONS:
Proceeds from sale of shares 423,257,536 366,818,755
Reinvestment of dividends and distributions 106,986,590 29,488,316
Net asset value of shares redeemed (283,734,063) (268,968,150)
-------------- --------------
Net increase (decrease) in net assets from capital share
transactions 246,510,063 127,338,921
-------------- --------------
Net increase (decrease) in net assets 453,011,266 361,474,877
NET ASSETS:
Beginning of period 1,034,968,557 673,493,680
-------------- --------------
End of period $1,487,979,823 $1,034,968,557
============== ==============
Undistributed net investment income (loss): $ (1,857,546) $ 0
============== ==============
</TABLE>
<TABLE>
<CAPTION>
WARBURG PINCUS GLOBAL
HEALTH SCIENCES FUND
--------------------------------
FOR THE
SIX MONTHS FOR THE YEAR
ENDED ENDED
APRIL 30, 2000 OCTOBER 31,
(UNAUDITED) 1999
-------------- ------------
<S> <C> <C>
FROM OPERATIONS:
Net investment income (loss) $ (235,086) $ (401,889)
Net realized gain from security transactions 4,518,138 1,887,922
Net realized loss from foreign currency related items 0 0
Net change in unrealized appreciation (depreciation) from
investments 2,035,467 1,071,423
------------ ------------
Net increase (decrease) in net assets resulting from operations 6,318,519 2,557,456
------------ ------------
FROM DIVIDENDS AND DISTRIBUTIONS:
Dividends from net investment income:
Common Class shares 0 0
Advisor Class shares 0 0
Distributions from net realized gains:
Common Class shares 0 0
Advisor Class shares 0 0
------------ ------------
Net decrease in net assets from dividends and distributions 0 0
------------ ------------
FROM CAPITAL SHARE TRANSACTIONS:
Proceeds from sale of shares 47,694,221 35,244,741
Reinvestment of dividends and distributions 0 0
Net asset value of shares redeemed (49,140,955) (54,564,366)
------------ ------------
Net increase (decrease) in net assets from capital share
transactions (1,446,734) (19,319,625)
------------ ------------
Net increase (decrease) in net assets 4,871,785 (16,762,169)
NET ASSETS:
Beginning of period 47,573,921 64,336,090
------------ ------------
End of period $ 52,445,706 $ 47,573,921
============ ============
Undistributed net investment income (loss): $ (235,086) $ 0
</TABLE>
See Accompanying Notes to Financial Statements.
28 & 29
<PAGE>
WARBURG PINCUS BALANCED FUND
FINANCIAL HIGHLIGHTS
(For a Common Class share of the Fund Outstanding Throughout Each Period)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED
APRIL 30, 2000
(UNAUDITED) 1999 1998 1997** 1997+ 1996+ 1995+
-------------- ------- ------- ------- ------- ------- ------
<S> <C> <C> <C> <C> <C> <C> <C>
PER-SHARE DATA
Net asset value,
beginning of period $ 13.88 $ 13.50 $ 14.38 $ 14.24 $ 11.94 $ 11.12 $11.01
------- ------- ------- ------- ------- ------- ------
INVESTMENT ACTIVITIES:
Net investment income 0.11 0.27 0.25 0.03 0.23 0.16 0.21
Net gains on net investments
(both realized and
unrealized) 0.81 1.45 0.42 0.16 2.46 0.94 1.72
------- ------- ------- ------- ------- ------- ------
Total from investment
activities 0.92 1.72 0.67 0.19 2.69 1.10 1.93
------- ------- ------- ------- ------- ------- ------
LESS DIVIDENDS AND
DISTRIBUTIONS:
Dividends from net
investment income (0.13) (0.28) (0.26) (0.05) (0.24) (0.13) (0.31)
Distributions from net
realized gains (1.65) (1.06) (1.29) 0.00 (0.15) (0.15) (1.51)
------- ------- ------- ------- ------- ------- ------
Total dividends and
distributions (1.78) (1.34) (1.55) (0.05) (0.39) (0.28) (1.82)
------- ------- ------- ------- ------- ------- ------
NET ASSET VALUE,
END OF PERIOD $13.02 $ 13.88 $ 13.50 $ 14.38 $ 14.24 $ 11.94 $11.12
======= ======= ======= ======= ======= ======= ======
Total return 7.13%(DAGGER) 13.61% 5.33% 1.30%(DAGGER) 23.03 9.99% 21.56%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s omitted) $30,168 $32,805 $35,542 $38,294 $38,926 $30,853 $5,342
------- ------- ------- ------- ------- ------- ------
Ratio of expenses to
average net assets@ 1.37%* 1.35% 1.35% 1.35%* 1.35% 1.53% 1.53%
Ratio of net income to
average net assets 2.01%* 1.94% 1.76% 1.38%* 1.76% 1.66% 2.30%
Decrease reflected in
above operating expense
ratios due to waviers/
reimbursements .57%* .62% .62% .68%* .55% .90% 4.51%
Portfolio turnover rate 91% 116% 132% 15% 120% 108% 107%
--------------------------------------------------------------------------------
<FN>
** For the two months ended October 31, 1997.
@ Interest earned on uninvested cash balances is used to offset portions of the
transfer agent expense. These arrangements resulted in reduction to the
Common Shares net expense ratio by .02% annualized for the six months ended
April 30, 2000. These arrangements had no effect on the funds expense ratios
for the previous periods. The Common Shares operating expense ratio after
reflecting these arrangements was 1.35% annualized for the six months ended
April 30, 2000.
+ For the year ended August 31.
(DAGGER) Non-annualized.
* Annualized.
</FN>
</TABLE>
See Accompanying Notes to Financial Statements.
30
<PAGE>
WARBURG PINCUS VALUE FUND
FINANCIAL HIGHLIGHTS
(For a Common Class share of the Fund Outstanding Throughout Each Period)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED
APRIL 30, 2000
(UNAUDITED) 1999 1998 1997** 1997+ 1996+ 1995+
-------------- -------- -------- -------- -------- -------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
PER-SHARE DATA
Net asset value,
beginning of period $ 18.93 $ 16.97 $ 18.56 $ 18.44 $ 14.90 $ 16.40 $ 14.56
-------- -------- -------- -------- -------- -------- ----------
INVESTMENT ACTIVITIES:
Net investment income 0.04 0.13 0.14 0.02 0.14 0.11 0.22
Net gains (losses) on
net investments (both
realized and
unrealized) (0.43) 2.49 1.36 0.14 3.53 (0.66) 1.98
-------- -------- -------- -------- -------- -------- ----------
Total from investment
activities (0.39) 2.62 1.50 0.16 3.67 (0.55) 2.20
-------- -------- -------- -------- -------- -------- ----------
LESS DIVIDENDS AND
DISTRIBUTIONS:
Dividends from net
investment income (0.05) (0.13) (0.14) (0.04) (0.13) (0.14) (0.18)
Distributions from net
realized gains (4.14) (0.53) (2.95) 0.00 0.00 (0.81) (0.18)
-------- -------- -------- -------- -------- -------- ----------
Total dividends and
distributions (4.19) (0.66) (3.09) (0.04) (0.13) (0.95) (0.36)
-------- -------- -------- -------- -------- -------- ----------
NET ASSET VALUE,
END OF PERIOD $ 14.35 $ 18.93 $ 16.97 $ 18.56 $ 18.44 $ 14.90 $ 16.40
======== ======== ======== ======== ======== ======== ==========
Total return (2.22)%(DAGGER) 15.77% 9.11% 0.85%(DAGGER) 24.78% (3.54)% 15.62%
RATIOS/SUPPLEMENTAL
DATA:
Net assets, end of period
(000s omitted) $312,722 $602,282 $703,808 $608,205 $601,159 $727,627 $1,038,193
Ratio of expenses to
average net assets 1.25%@* 1.14%@ 1.19%@ 1.18%@* 1.15%@ 1.21%@ 1.22%
Ratio of net income to
average net assets .50%* .65% .83% .75%* .80% .69% 1.64%
Portfolio turnover rate 23% 78% 78% 19% 148% 94% 109%
--------------------------------------------------------------------------------
<FN>
** For the two months ended October 31, 1997.
@ Interest earned on uninvested cash balances is used to offset portions of the
transfer agent expense. These arrangements resulted in reduction to the
Common Shares net expense ratio by .02% annualized for the six months ended
April 30, 2000. These arrangements had no effect on the funds expense ratios
for the previous periods. The Common Shares operating expense ratio after
reflecting these arrangements was 1.23% annualized for the six months ended
April 30, 2000.
+ For the year ended August 31.
(DAGGER) Non-annualized.
* Annualized.
</FN>
</TABLE>
See Accompanying Notes to Financial Statements.
31
<PAGE>
WARBURG PINCUS CAPITAL APPRECIATION FUND
FINANCIAL HIGHLIGHTS
(For a Common Class share of the Fund Outstanding Throughout Each Period)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED FOR THE YEAR ENDED OCTOBER 31,
APRIL 30, 2000 ------------------------------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
-------------- ---------- -------- ---------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
PER-SHARE DATA
Net asset value,
beginning of period $ 25.82 $ 19.52 $ 21.09 $ 17.95 $ 16.39 $ 14.29
---------- ---------- -------- ---------- -------- -------
INVESTMENT ACTIVITIES:
Net investment
income (loss) (0.04) (0.05) 0.01 0.11 0.08 0.04
Net gains on investments
(both realized and
unrealized) 7.81 7.27 2.31 4.93 3.53 3.08
---------- ---------- -------- ---------- -------- -------
Total from investment
activities 7.77 7.22 2.32 5.04 3.61 3.12
---------- ---------- -------- ---------- -------- -------
LESS DIVIDENDS AND
DISTRIBUTIONS:
Dividends from net
investment income 0.00 (0.01) (0.08) (0.10) (0.01) (0.04)
Distributions from net
realized gains (2.93) (0.91) (3.81) (1.80) (2.04) (0.98)
---------- ---------- -------- ---------- -------- -------
Total dividends and
distributions (2.93) (0.92) (3.89) (1.90) (2.05) (1.02)
---------- ---------- -------- ---------- -------- -------
NET ASSET VALUE, END OF PERIOD $ 30.66 $ 25.82 $ 19.52 $ 21.09 $ 17.95 $ 16.39
========== ========== ======== ========== ======== =======
Total return 31.88%(DAGGER) 38.28% 12.75% 30.98% 24.67% 24.05%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s omitted) $1,451,260 $1,005,670 $646,657 $587,091 $407,707 $235,712
Ratio of expenses to average
net assets@ 0.98%* 1.01% 1.00% 1.01% 1.04% 1.12%
Ratio of net income
(loss) to average net
assets (.27)%* (.23)% .05% .54% .59% .31%
Portfolio turnover rate 148% 144% 169% 238% 171% 146%
--------------------------------------------------------------------------------
<FN>
@ Interest earned on uninvested cash balances is used to offset portions of the
transfer agent expense. These arrangements resulted in a reduction to the
Common Shares net expense ratio by .02% annualized for the six months ended
April 30, 2000, .01%, .00%, .01% and .01% for the year or period ended October
31, 1999, 1998, 1997, and 1996 respectively. The Common Shares' operating
expense ratio after reflecting these arrangements were .96% annualized for the
six months ended April 30, 2000, 1.00% for each of the years ended October 31,
1999, 1998, 1997 and 1.03% for the year ended October 31, 1996.
(DAGGER) Non-annualized.
* Annualized.
</FN>
</TABLE>
See Accompanying Notes to Financial Statements.
32
<PAGE>
WARBURG PINCUS GLOBAL HEALTH SCIENCES FUND
FINANCIAL HIGHLIGHTS
(For a Common Class share of the Fund Outstanding Throughout Each Period)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED FOR THE YEAR ENDED OCTOBER 31,
APRIL 30, 2000 ---------------------------------------
(UNAUDITED) 1999 1998 1997**
-------------- ------- ------- -------
<S> <C> <C> <C> <C>
PER-SHARE DATA
Net asset value, beginning of period $ 14.92 $ 14.41 $ 12.22 $ 10.00
------- ------- ------- -------
INVESTMENT ACTIVITIES:
Net investment loss (0.07) (0.13) (0.06) (0.02)
Net gains on investments (both realized and unrealized) 2.54 0.64 2.97 2.24
------- ------- ------- -------
Total from investment activities 2.47 0.51 2.91 2.22
------- ------- ------- -------
LESS DIVIDENDS AND DISTRIBUTIONS:
Dividends from net investment income 0.00 0.00 (0.04) 0.00
Distributions from realized net gains 0.00 0.00 (0.68) 0.00
------- ------- ------- -------
Total dividends and distributions 0.00 0.00 (0.72) 0.00
------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD $ 17.39 $ 14.92 $ 14.41 $ 12.22
======= ======= ======= =======
Total return 16.42%(DAGGER) 3.54% 25.25% 22.20%(DAGGER)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s omitted) $52,446 $47,574 $64,336 $18,246
Ratio of expenses to average net assets@ 1.61%* 1.59% 1.59% 1.59%*
Ratio of net income (loss) to average net asset (0.89)%* 0.62% (0.58)% (0.24)%*
Decrease reflected in above operating expense
ratios due to waviers/reimbursements 0.25%* 0.29% 0.38% 1.83%*
Portfolio turnover rate 140% 146% 63% 160%
--------------------------------------------------------------------------------
<FN>
** For the two months ended December 31, 1996 (commencement of operations)
through October 31, 1997.
@ Interest earned on uninvested cash balances is used to offset portions of the
transfer agent expense. These arrangements resulted in reduction to the
Common Shares net expense ratio by .02% annualized for the six months ended
April 30, 2000. These arrangements had no effect on the funds expense ratios
for the previous periods. The Common Shares operating expense ratio after
reflecting these arrangements was 1.59% annualized for the six months ended
April 30, 2000.
(DAGGER) Non-annualized.
* Annualized.
</FN>
</TABLE>
See Accompanying Notes to Financial Statements.
33
<PAGE>
WARBURG PINCUS DOMESTIC EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
The Warburg Pincus Balanced Fund (the "Balanced Fund"), Warburg Pincus Value
Fund (formerly, Warburg Pincus Growth & Income Fund) (the "Value Fund"), Warburg
Pincus Capital Appreciation Fund (the "Capital Appreciation Fund"), and the
Warburg Pincus Global Health Sciences Fund (formerly, Warburg Pincus Health
Sciences Fund) (the "Global Health Sciences Fund"), each a Maryland corporation,
are registered under the Investment Company Act of 1940, as amended (the "1940
Act"), as diversified, open-end management investment companies (each, a "Fund"
and collectively, the "Funds").
Investment objectives for each fund are as follows: the Balanced Fund seeks
maximum total return through a combination of long-term growth of capital, and
current income consistent with preservation of capital; the Value Fund seeks
long-term growth of capital, income and a reasonable current return; the Capital
Appreciation Fund seeks long-term capital appreciation and the Global Health
Sciences Fund seeks capital appreciation.
Each Fund (except the Capital Appreciation Fund) may invest up to 15% of its
net assets in non-publicly traded securities. The Capital Appreciation Fund may
invest up to 10% of its total assets in such securities. Non-publicly traded
securities may be less liquid than publicly traded securities, and they may be
difficult or impossible to sell at the time and the price the Fund would like.
In addition, the lack of an active market may make it difficult to obtain an
accurate price for a Fund security.
Each Fund (except the Global Health Sciences Fund) offers two classes of
shares, one class being referred to as the Common Class shares and one class
being referred to as Advisor Class shares. Common and Advisor Class 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 Class shares for the Balanced Fund and the Global
Health Sciences Fund bear expenses paid pursuant to a shareholder servicing and
distribution plan at an annual rate not to exceed .25% of the average daily net
asset value of each Fund's Common Class share. Advisor Class shares 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
Advisor Class shares. Advisor Class shares are currently bearing expenses of
.50% of average daily net assets.
The net asset value of each Fund is determined daily as of the close of
regular trading on the New York Stock Exchange. Each Fund's investments are
valued at market value, which is generally determined using the last reported
sales price. If no sales are reported, investments are generally
34
<PAGE>
WARBURG PINCUS DOMESTIC EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES -- (CONT'D)
valued at the mean between the last reported bid and asked 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 Board. Short-term investments
that mature in 60 days or less are valued on the basis of amortized cost, which
approximates market value, unless the Board determines that using this method
would not reflect an investment's value.
The books and records of the Funds are maintained in U.S. dollars.
Transactions denominated in foreign currencies are recorded at the current
prevailing exchange rates. All assets and liabilities denominated in foreign
currencies are translated into U.S. dollar amounts at the current exchange rate
at the end of the period. Translation gains or losses resulting from changes in
the exchange rate during the reporting period and realized gains and losses on
the settlement of foreign currency transactions are reported in the results of
operations for the current period. The Funds do not isolate that portion of
realized 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 realized
gains and losses on investments in debt securities which are due to changes in
the foreign exchange rate from that which are due to changes in market prices of
debt securities.
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 high cost method for both financial reporting and
income tax purposes.
Dividends from net investment income and net realized capital gains, if any,
are declared and paid at least annually (except with respect to the Value Fund
and the Balanced Fund for which dividends, if any, are paid quarterly). 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
35
<PAGE>
WARBURG PINCUS DOMESTIC EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES -- (CONT'D)
investment companies under the Internal Revenue Code of 1986, as amended ("the
Code"), and make the requisite distributions to its shareholders which will be
sufficient to relieve it from federal income and excise taxes.
Pursuant to an exemptive order issued by the Securities and Exchange
Commission, each Fund, along with other Funds advised by Credit Suisse Asset
Management LLC, ("CSAM"), can transfer uninvested cash balances to a pooled cash
account, which is invested in repurchase agreements secured by U.S. government
securities. Securities, pledged as collateral for repurchase agreements, are
held by the Funds' custodian bank until the agreements mature. Each agreement
requires that the market value of the collateral be sufficient to cover payments
of interest and principal; however, in the event of default or bankruptcy by the
counterparty to the agreement, retention of the collateral may be subject to
legal proceedings. At April 30, 2000 the Funds had no investments in repurchase
agreements.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses during
the reporting period. Actual results could differ from these estimates.
Effective May 1, 2000, Global Health Sciences changed its fiscal and tax year
ends from October 31st to August 31st, which was approved by the Fund's Board of
Directors on May 1, 2000.
The Funds have an arrangement with their transfer agent whereby interest
earned on uninvested cash balances was used to offset a portion of their
transfer agent expense.
For the six months ended April 30, 2000, the Funds received credits or
reimbursements under this arrangement as follows:
FUND AMOUNT
---- --------
Balanced Fund $ 4,411
Value Fund 60,872
Capital Appreciation Fund 195,972
Global Health Sciences Fund 7,687
2. INVESTMENT ADVISER, CO-ADMINISTRATORS AND DISTRIBUTOR
Pursuant to Investment Advisory Agreement, CSAM, an indirect, wholly owned
subsidiary of Credit Suisse Group, serves as investment advisor for each of the
Funds described herein.
36
<PAGE>
WARBURG PINCUS DOMESTIC EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
2. INVESTMENT ADVISER, CO-ADMINISTRATORS AND DISTRIBUTOR -- (CONT'D)
For its investment advisory services, CSAM receives the following fees based
on each Fund's average daily net assets:
FUND ANNUAL RATE
------ ---------------------------------
Balanced Fund .90% of average daily net assets
Value Fund .75% of average daily net assets
CapitalAppreciation Fund .70% of average daily net assets
Global Health Sciences Fund 1.00% of average daily net assets
For the six months ended April 30, 2000, investment advisory fees and
voluntary waivers were as follows:
GROSS NET
FUND ADVISORY FEE WAIVER ADVISORY FEE
---- ------------ -------- ------------
Balanced Fund $ 140,158 $(65,291) $ 74,867
Value Fund 1,690,984 0 1,690,984
Capital Appreciation Fund 4,644,573 0 4,644,573
Global Health Sciences Fund 265,103 (49,819) 215,284
Credit Suisse Asset Managment Securities, Inc. ("CSAMSI") serves as each
Fund's co-administrator. PFPC Inc. ("PFPC"), an indirect, wholly-owned
subsidiary of PNC Bank Corp. ("PNC"), also serves as each Fund's
co-administrator. For administrative services, CSAMSI currently receives a fee
calculated at an annual rate of .10% of each Fund's average daily net assets.
For the six months ended April 30, 2000, administrative services fees were as
follows:
FUND CO-ADMINISTRATION FEE
---- ---------------------
Balanced Fund $ 15,573
Value Fund 225,465
Capital Appreciation Fund 663,510
Global Health Sciences Fund 26,510
For administrative services, PFPC currently receives a fee, exclusive of
out-of-pocket expenses, calculated as follows:
AVERAGE DAILY
FUND NET ASSETS ANNUAL RATE
---- ------------------ -----------
Balanced Fund &
Value Fund First $500 million 0.15%
Next $1 Billion 0.10%
Over $1.5 Billion 0.05%
Capital Appreciation Fund
& Global Health
Sciences Fund First $500 million 0.10%
Next $1 Billion 0.075%
Over $1.5 Billion 0.05%
37
<PAGE>
WARBURG PINCUS FUNDS DOMESTIC EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
2. INVESTMENT ADVISER, CO-ADMINISTRATORS AND DISTRIBUTOR -- (CONT'D)
For the six months ended April 30, 2000, administrative service fees earned
and voluntarily waived by PFPC (including out-of-pocket expenses) were as
follows:
NET
FUND CO-ADMINISTRATION FEE WAIVER CO-ADMINISTRATION FEE
---- --------------------- -------- ---------------------
Balanced Fund $ 28,004 $(23,360) $ 4,644
Value Fund 333,396 0 333,396
Capital Appreciation Fund 559,462 0 559,462
Global Health Sciences Fund 27,641 (16,318) 11,323
CSAMSI served as distributor of each Fund's shares until January 1, 2000. On
January 1, 2000, Provident Distributors, Inc. ("PDI") replaced CSAMSI as
distributor to each Fund. No compensation is payable by any of the Funds to PDI
for distribution services. Pursuant to a distribution plan adopted by each Fund
pursuant to Rule 12b-1 under the 1940 Act, CSAMSI receives a fee for its selling
services. This fee is calculated at an annual rate of .25% of the average daily
net assets of the Common Class shares of the Balanced Fund and the Global Health
Sciences Fund and at an annual rate of.50% of the Advisor Class shares of the
Balanced Fund, the Value Fund and the Capital Appreciation Fund. CSAMSI may use
this fee to compensate service organizations for shareholder servicing and
distribution services.
For the six months ended April 30, 2000, shareholder servicing and
distribution fees were as follows:
SHAREHOLDER SERVICING/
FUND DISTRIBUTION FEE
---- ----------------------
Balanced Fund
Common shares $ 38,670
Advisor shares 525
--------
$ 39,195
========
Value Fund
Advisor shares $143,770
========
Capital Appreciation Fund
Advisor shares $ 82,652
========
Global Health Sciences Fund
Common shares $ 66,276
========
38
<PAGE>
WARBURG PINCUS DOMESTIC EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
3. LINE OF CREDIT
The Funds, together with other Funds advised by CSAM, have established a $250
million committed, unsecured, line of credit facility ("Credit Facility") with
Deutsche Bank AGas administrative agent, State Street Bank and Trust Company as
operations agent, Bank of Nova Scotia as syndication agent as well as certain
other lenders, for temporary or emergency purposes primarily relating to
unanticipated fund share redemptions. Under the terms of the Credit Facility,
the Funds with access to the Credit Facility pay an aggregate commitment fee at
a rate of .075% per annum on the average daily balance of the Credit Facility
that is undisbursed and uncanceled during the preceding quarter allocated among
the participating funds in such manner as is determined by the governing Boards
of the various Funds. In addition, the participating Funds will pay interest on
borrowing at the Federal Funds rate plus .50%. At April 30, 2000 and during the
six months ended April 30, 2000, none of these Funds had borrowings under the
Credit Facility.
4. INVESTMENTS IN SECURITIES
For the six months ended April 30, 2000, purchases and sales of investment
securities (excluding short-term investments) were as follows:
FUND PURCHASES SALES
---- ------------ ------------
Balanced Fund $ 13,707,221 $ 17,179,710
Value Fund 104,934,006 359,860,379
Capital Appreciation Fund 937,817,095 906,114,484
Global Health Sciences Fund 34,729,696 37,361,387
At April 30, 2000, the net unrealized appreciation from investments for those
securities having an excess of value over cost and net unrealized depreciation
from investments for those securities having an excess of cost over value (based
on cost for federal income tax purposes) was as follows:
NET UNREALIZED
UNREALIZED UNREALIZED APPRECIATION
FUND APPRECIATION DEPRECIATION (DEPRECIATION)
---- ------------ ------------ -------------
Balanced Fund $ 3,714,402 $ (1,733,361) $ 1,981,041
Value Fund 57,828,806 (17,858,156) 39,970,650
Capital Appreciation Fund 473,731,782 (20,198,525) 453,533,257
Global Health Sciences Fund 15,229,059 (1,548,148) 13,680,911
39
<PAGE>
WARBURG PINCUS DOMESTIC EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
5. FORWARD FOREIGN CURRENCY CONTRACTS
Each 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 foreign currency relative to the U.S. dollar. Each
Fund will enter into forward contracts primarily for hedging purposes. 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 or the date on which an
offsetting position is entered into. At April 30, 2000, there were no open
forward foreign currency contracts.
6. CAPITAL SHARE TRANSACTIONS
The Balanced Fund, the Value Fund and the Global Health Sciences 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 Common Class shares (two billion shares for the Balanced Fund and
the Value Fund) are designated as the Advisor Class shares. The Capital
Appreciation Fund is authorized to issue an unlimited number of full and
fractional shares of beneficial interest, $.001 par value per share, of which an
unlimited number of shares are classified as the Common Class shares and an
unlimited number are classified as the Advisor Class shares.
40
<PAGE>
WARBURG PINCUS DOMESTIC EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
6. CAPITAL SHARE TRANSACTIONS -- (CONT'D)
Transactions in shares of each Fund were as follows:
<TABLE>
<CAPTION>
BALANCED FUND
----------------------------------------------------------------------------
COMMON CLASS SHARES ADVISOR CLASS SHARES
--------------------------------- --------------------------------
SIX MONTHS FOR THE SIX MONTHS FOR THE
ENDED YEAR ENDED ENDED YEAR ENDED
APRIL 30, 2000 OCTOBER 31, APRIL 30, 2000 OCTOBER 31,
(UNAUDITED) 1999 (UNAUDITED) 1999
-------------- ------------ ----------- ----------
<S> <C> <C> <C> <C>
Shares sold 467,773 524,219 6,546 11,886
Shares issued to shareholders on reinvestment
of dividends 316,148 257,288 2,266 1,599
Shares redeemed (831,133) (1,050,316) (14,880) (6,792)
------------ ------------ --------- --------
Net increase (decrease) in shares outstanding (47,212) (268,809) (6,068) 6,693
============ ============ ========= ========
Proceeds from sale of shares $ 6,281,979 $ 7,131,433 $ 85,374 $160,639
Reinvestment of dividends and distributions 3,981,025 3,321,981 28,466 20,611
Net asset value of shares redeemed (10,762,304) (14,129,108) (189,519) (89,733)
------------ ------------ --------- --------
Net increase (decrease) from capital share
transactions $ (499,300) $ (3,675,694) $ (75,679) $ 91,517
============ ============ ========= ========
</TABLE>
<TABLE>
<CAPTION>
VALUE FUND
---------------------------------------------------------------------------
COMMON CLASS SHARES ADVISOR CLASS SHARES
--------------------------------- --------------------------------
SIX MONTHS FOR THE SIX MONTHS FOR THE
ENDED YEAR ENDED ENDED YEAR ENDED
APRIL 30, 2000 OCTOBER 31, APRIL 30, 2000 OCTOBER 31,
(UNAUDITED) 1999 (UNAUDITED) 1999
-------------- ------------ ----------- ----------
<S> <C> <C> <C> <C>
Shares sold 2,796,458 9,715,085 322,486 1,320,026
Shares issued to shareholders on reinvestment
of dividends 7,044,497 1,448,225 1,032,802 178,885
Shares redeemed (19,869,120) (20,825,196) (1,426,630) (3,400,047)
------------- ------------- ------------ ------------
Net increase (decrease) in shares outstanding (10,028,165) (9,661,886) (71,342) (1,901,136)
============= ============= ============ ============
Proceeds from sale of shares $ 40,711,605 $ 180,951,663 $ 5,523,342 $ 24,501,424
Reinvestment of dividends and
distributions 101,997,862 25,362,924 14,965,110 3,107,054
Net asset value of shares redeemed (308,936,033) (384,878,733) $(21,659,293) (62,449,088)
------------- ------------- ------------ ------------
Net increase (decrease) from capital share
transactions $(166,226,566) $(178,564,146) $ 1,170,841 $(34,840,610)
============= ============= ============ ============
</TABLE>
41
<PAGE>
WARBURG PINCUS DOMESTIC EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
6. CAPITAL SHARE TRANSACTIONS -- (CONT'D)
<TABLE>
<CAPTION>
CAPITAL APPRECIATION FUND
---------------------------------------------------------------------------
COMMON CLASS SHARES ADVISOR CLASS SHARES
--------------------------------- --------------------------------
SIX MONTHS FOR THE SIX MONTHS FOR THE
ENDED YEAR ENDED ENDED YEAR ENDED
APRIL 30, 2000 OCTOBER 31, APRIL 30, 2000 OCTOBER 31,
(UNAUDITED) 1999 (UNAUDITED) 1999
-------------- ------------ ----------- ----------
<S> <C> <C> <C> <C>
Shares sold 13,804,195 15,338,565 278,977 344,236
Shares issued to shareholders on reinvestment
of dividends 3,946,691 1,395,652 103,144 64,497
Shares redeemed (9,358,205) (10,915,776) (318,921) (646,495)
------------- ------------- ----------- ------------
Net increase (decrease) in shares outstanding 8,392,681 5,818,441 63,200 (237,762)
============= ============= =========== ============
Proceeds from sale of shares $ 414,896,443 $ 358,830,227 $ 8,361,093 $ 7,988,528
Reinvestment of dividends and distributions 104,311,032 28,206,125 2,675,558 1,282,191
Net asset value of shares redeemed (274,646,798) (253,908,501) (9,087,265) (15,059,649)
------------- ------------- ----------- ------------
Net increase (decrease) from capital share
transactions $ 244,560,677 $ 133,127,851 $ 1,949,386 $ (5,788,930)
============= ============= =========== ============
</TABLE>
<TABLE>
<CAPTION>
GLOBAL HEALTH SCIENCES
----------------------------------
COMMON CLASS SHARES
----------------------------------
SIX MONTHS FOR THE
ENDED YEAR ENDED
APRIL 30, 2000 OCTOBER 31,
(UNAUDITED) 1999
------------ ------------
<S> <C> <C>
Shares sold 2,559,602 2,314,620
Shares redeemed (2,731,403) (3,590,606)
------------ ------------
Net increase (decrease) in shares outstanding (171,801) (1,275,986)
============ ============
Proceeds from sale of shares $ 47,694,221 $ 35,244,741
Net asset value of shares redeemed (49,140,955) (54,564,366)
------------ ------------
Net increase (decrease) from capital share
transactions $ (1,446,734) $(19,319,625)
============ ============
</TABLE>
42
<PAGE>
WARBURG PINCUS DOMESTIC EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
7. OTHER FINANCIAL HIGHLIGHTS
Each Fund (other than the Global Health Sciences Fund) currently offers one
other class of shares, Advisor Class shares, representing equal pro rata
interest in each of the respective Warburg Pincus Equity Funds. The financial
highlights for an Advisor Class share of each fund are as follows:
<TABLE>
<CAPTION>
WARBURG PINCUS BALANCED FUND
------------------------------------------------------------------------------------------------
ADVISOR CLASS SHARES
------------------------------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE YEAR ENDED OCTOBER 31,
APRIL 30, 2000 ------------------------------------------------------------------------------
(UNAUDITED) 1999 1998 1997** 1997+ 1996 1995++
-------------- ------ ------ ------ ------ ------- -------
<S> <C> <C> <C> <C> <C> <C> <C>
PER-SHARE DATA
Net asset value, beginning
of period $13.85 $13.47 $14.37 $14.22 $11.94 $ 11.13 $ 10.72
------ ------ ------ ------ ------ ------- -------
INVESTMENT ACTIVITIES:
Net investment income/(loss) 0.14 0.26 0.21 0.03 (0.02) 0.37 0.01
Net gains on investment
securities
(both realized and
unrealized) 0.77 1.43 0.41 0.16 2.67 0.68 0.40
------ ------ ------ ------ ------ ------- -------
Total from investment
activities 0.91 1.69 0.62 0.19 2.65 1.05 0.41
------ ------ ------ ------ ------ ------- -------
LESS DIVIDENDS AND
DISTRIBUTIONS:
Dividends from net
investment income (0.09) (0.25) (0.23) (0.04) (0.22) (0.09) 0.00
Distributions from net
realized gains (1.65) (1.06) (1.29) 0.00 (0.15) (0.15) 0.00
------ ------ ------ ------ ------ ------- -------
Total dividends and
distributions (1.74) (1.31) (1.52) (0.04) (0.37) (0.24) 0.00
------ ------ ------ ------ ------ ------- -------
NET ASSET VALUE,
END OF PERIOD $13.02 $13.85 $13.47 $14.37 $14.22 $ 11.94 $ 11.13
====== ====== ====== ====== ====== ======= =======
Total return 7.09%(DAGGER) 13.37% 4.93% 1.30%(DAGGER) 22.66% 9.56% 3.82%(DAGGER)
RATIOS AND SUPPLEMENTAL DATA:
Net Assets, End of Period
(000s omitted) $ 171 $ 265 $ 168 $ 158 $ 149 $ 12 $ 1
Ratio of expenses to
average net assets 1.62%@* 1.60%@ 1.60%@ 1.60%@ 1.60%@ 1.71% 1.76%
Ratio of net income to
average net assets 1.76%* 1.69% 1.52% 1.13% 1.53% (4.11)% 2.00%
Decrease reflected in
above operating expense
ratios due to waivers/
reimbursements 0.58%* 0.63% 1.19% 1.35% 1.21% 203.35% 626.71%
Portfolio turnover rate 45% 117% 132% 15% 120% 108% 107%
--------------------------------------------------------------------------------
<FN>
@ Interest earned on uninvested cash balances is used to offset portions of
transfer agent expense. These arrangements resulted in reduction to the
Adviser Shares net expense ratio by .02% annualized for the six months ended
April 30, 2000. These arrangements had no effect on the funds expense ratios
for the previous periods. The Advisor Shares operating expense ratio after
reflecting these arrangements was 1.60% annualized for the six months ended
April 30, 2000.
(DAGGER) Non-Annualized
* Annualized.
** For the two months ended October 31, 1997.
+ For the year ended August 31.
++ For the period July 31, 1995 (Commencement of Operations) to August 31, 1995.
</FN>
</TABLE>
43
<PAGE>
WARBURG PINCUS DOMESTIC EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
7. OTHER FINANCIAL HIGHLIGHTS -- (CONT'D)
<TABLE>
<CAPTION>
WARBURG PINCUS VALUE
--------------------------------------------------------------------------------------------------
ADVISOR CLASS SHARES
--------------------------------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE YEAR ENDED OCTOBER 31,
APRIL 30, 2000 ---------------------------------------------------------------------------------
(UNAUDITED) 1999 1998 1997** 1997+ 1996 1995++
-------------- ------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C>
PER-SHARE DATA
Net asset value, beginning
of period $ 18.92 $ 16.96 $ 18.55 $ 18.42 $ 14.88 $ 16.38 $ 14.87
------- ------- ------- ------- ------- ------- -------
INVESTMENT ACTIVITIES:
Net investment income (0.01) 0.03 0.10 0.01 0.07 0.08 0.02
Net gains (losses) on
net investment securities
(both realized and
unrealized) (0.41) 2.49 1.35 0.14 3.55 (0.70) 1.54
------- ------- ------- ------- ------- ------- -------
Total from investment
activities (0.42) 2.52 1.45 0.15 3.62 (0.61) 1.56
------- ------- ------- ------- ------- ------- -------
LESS DIVIDENDS AND
DISTRIBUTIONS:
Dividends from net
investment income (0.01) (0.03) (0.09) (0.02) (0.08) (0.07) (0.05)
Distributions from net
realized gains (4.14) (0.53) (2.95) 0.00 0.00 (0.81) 0.00
------- ------- ------- ------- ------- ------- -------
Total dividends and
distributions (4.15) (0.56) (3.04) (0.02) (0.08) (0.88) (0.05)
------- ------- ------- ------- ------- ------- -------
NET ASSET VALUE,
END OF PERIOD $ 14.35 $ 18.92 $ 16.96 $ 18.55 $ 18.42 $ 14.88 $ 16.38
======= ======= ======= ======= ======= ======= =======
Total return (2.43)% 15.20% 8.70% 0.81%(DAGGER) 24.37% (3.92)% 10.49%(DAGGER)
RATIOS AND SUPPLEMENTAL
DATA:
Net Assets, End of Period
(000s omitted) $53,252 $71,572 $96,397 $87,929 $84,867 $79,565 $56,902
Ratio of expenses to
average net assets 1.75%@* 1.64%@ 1.55%@ 1.58%@ 1.54%@ 1.59%@ 1.92%
Ratio of net income to
average net assets (0.03)%* 0.15% 0.47% 0.35% 0.43% 0.28% 0.43%
Portfolio turnover rate 23% 78% 78% 19% 148% 94% 109%
--------------------------------------------------------------------------------
<FN>
@ Interest earned on uninvested cash balances is used to offset portions of the
transfer agent expense. These arrangements resulted in reduction to the
Advisor Shares net expense ratio by .02% annualized for the six months ended
April 30, 2000 and by .01% for the year ended October 31, 1999, and .00% for
the year or period ended 1998, 1997, 1996 and 1995. The Advisor Shares
operating expense ratios after reflecting these arrangements were 1.73%
annualized for the six months ended April 30, 2000, and 1.63% for the year
ended October 31, 1999.
(DAGGER) Non-Annualized.
* Annualized.
** For the two months ended October 31, 1997.
+ For the years ended August 31.
++ For the period May 15, 1995 (Commencement of Operations) to August 31, 1995.
</FN>
</TABLE>
44
<PAGE>
WARBURG PINCUS DOMESTIC EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
7. OTHER FINANCIAL HIGHLIGHTS -- (CONT'D)
<TABLE>
<CAPTION>
WARBURG PINCUS CAPITAL APPRECIATION FUND
---------------------------------------------------------------------------------------
ADVISOR CLASS SHARES
---------------------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE YEAR ENDED OCTOBER 31,
APRIL 30, 2000 -------------------------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
-------------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
PER-SHARE DATA
Net asset value,
beginning of period $ 25.28 $ 19.21 $ 20.82 $ 17.73 $ 16.26 $ 14.22
------- ------- ------- ------- ------- -------
INVESTMENT ACTIVITIES:
Net investment income/(loss) (0.10) (0.20) (0.09) 0.02 0.02 0.00
Net gain on investments
securities (both realized
and unrealized) 7.63 7.18 2.29 4.89 3.49 3.02
------- ------- ------- ------- ------- -------
Total from investment
activities 7.53 6.98 2.20 4.91 3.51 3.02
------- ------- ------- ------- ------- -------
LESS DIVIDENDS AND DISTRIBUTIONS:
Dividends from net
investment income 0.00 0.00 0.00 (0.01) 0.00 0.00
Distributions from net
realized gains (2.77) (0.91) (3.81) (1.81) (2.04) (0.98)
------- ------- ------- ------- ------- -------
Total dividends and
distributions (2.77) (0.91) (3.81) (1.82) (2.04) (0.98)
------- ------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD $ 30.04 $ 25.28 $ 19.21 $ 20.82 $ 17.73 $ 16.26
======= ======= ======= ======= ======= =======
Total return 31.53%(DAGGER) 37.62% 12.23% 30.37% 24.15% 23.41%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s omitted) $36,720 $29,299 $26,836 $34,601 $23,440 $11,594
Ratio to average daily
net assets
Ratio of expenses to
average net assets 1.48%@* 1.51%@ 1.43%@ 1.48%@ 1.53%@ 1.62%
Ratio of net income or
loss to average net assets (0.77)%* (0.73)% 0.39% 0.08% (0.09)% (0.18)%
Portfolio turnover rate 148% 144% 169% 238% 171% 146%
--------------------------------------------------------------------------------
<FN>
@ Interest earned on uninvested cash balances is used to offset portions of
transfer agent expense. These arrangements resulted in a deduction to the
Advisor Class shares net expense ratio by .02%, annualized for the six months
ended April 30, 2000, .01%, .00%, .00% and .01% for the years ended October
31, 1999 , 1998, 1997 and 1996 respectively. The Advisor Class shares
operating expense ratio after reflecting these arrangements were 1.46%,
annualized for the six months ended April 30, 2000, 1.50%, 1.43%, 1.48%, and
1.52% for each of the years ended October 31, 1999, 1998, 1997 and 1996
respectively.
(DAGGER) Non-Annualized.
* Annualized.
</FN>
</TABLE>
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[GRAPHIC OMITTED]
WARBURG PINCUS FUNDS
PART OF CREDIT SUISSE ASSET MANAGEMENT
P.O. BOX 9030, BOSTON, MA 02205-9030
800-WARBURG (800-927-2874) (BULLET) www.warburg.com
PROVIDENT DISTRIBUTORS, INC., DISTRIBUTOR. WPUSL-3-0400
