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WARBURG PINCUS EMERGING GROWTH FUND
Supplement to Common Share Prospectus dated February 20, 1997
The following information supplements and supersedes any contrary
information contained in the section entitled 'Certain Investment Strategies':
When-Issued Securities and Delayed-Delivery Transactions. The Emerging
Growth Fund may utilize up to 20% of its total assets to purchase securities on
a when-issued basis and purchase or sell securities on a delayed-delivery basis.
In these transactions, payment for and delivery of the securities occurs beyond
the regular settlement dates. The Fund will not enter into a when-issued or
delayed-delivery transaction for the purpose of leverage, but may sell the right
to acquire a when-issued security prior to its acquisition or dispose of its
right to deliver or receive securities in a delayed-delivery transaction if
Warburg deems it advantageous to do so. The payment obligation and the interest
rate that will be received in when-issued and delayed-delivery transactions are
fixed at the time the buyer enters into the commitment. Due to fluctuations in
the value of securities purchased or sold on a when-issued or delayed-delivery
basis, the prices of such securities may be higher or lower than the prices
available in the market on the dates when the investments are actually delivered
to the buyers.
The Fund will establish a segregated account with its custodian consisting
of cash or liquid securities in an amount equal to the amount of its
when-issued and delayed-delivery purchase commitments and will segregate the
securities underlying commitments to sell securities for delayed delivery.
Dated: January 8, 1998 WPDSF-16-0198
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WARBURG PINCUS EMERGING GROWTH FUND
Supplement to Advisor Share Prospectus dated February 20, 1997
The following information supplements and supersedes any contrary
information contained in the section entitled 'Certain Investment Strategies':
When-Issued Securities and Delayed-Delivery Transactions. The Emerging
Growth Fund may utilize up to 20% of its total assets to purchase securities on
a when-issued basis and purchase or sell securities on a delayed-delivery basis.
In these transactions, payment for and delivery of the securities occurs beyond
the regular settlement dates. The Fund will not enter into a when-issued or
delayed-delivery transaction for the purpose of leverage, but may sell the right
to acquire a when-issued security prior to its acquisition or dispose of its
right to deliver or receive securities in a delayed-delivery transaction if
Warburg deems it advantageous to do so. The payment obligation and the interest
rate that will be received in when-issued and delayed-delivery transactions are
fixed at the time the buyer enters into the commitment. Due to fluctuations in
the value of securities purchased or sold on a when-issued or delayed-delivery
basis, the prices of such securities may be higher or lower than the prices
available in the market on the dates when the investments are actually delivered
to the buyers.
The Fund will establish a segregated account with its custodian consisting
of cash or liquid securities in an amount equal to the amount of its when-issued
and delayed-delivery purchase commitments and will segregate the securities
underlying commitments to sell securities for delayed delivery.
Dated: January 8, 1998 ADEMG-16-0198
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WARBURG PINCUS EMERGING GROWTH FUND
Supplement to Statement of Additional Information dated February 20, 1997
The following information supplements the information contained in the
section entitled 'Investment Policies -- Additional Information on Other
Investment Practices':
When-Issued Securities and Delayed-Delivery Transactions. (Emerging Growth
Fund). When the Fund agrees to purchase when-issued or delayed-delivery
securities, its custodian will set aside cash or liquid securities equal to the
amount of the commitment in a segregated account. Normally, the custodian will
set aside portfolio securities to satisfy a purchase commitment, and in such a
case the Fund may be required subsequently to place additional assets in the
segregated account in order to ensure that the value of the account remains
equal to the amount of the Fund's commitment. It may be expected that the Fund's
net assets will fluctuate to a greater degree when it sets aside portfolio
securities to cover such purchase commitments than when it sets aside cash. When
the Fund engages in when-issued or delayed-delivery transactions, it relies on
the other party to consummate the trade. Failure of the seller to do so may
result in the Fund's incurring a loss or missing an opportunity to obtain a
price considered to be advantageous.
Dated: January 8, 1998
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