WARBURG PINCUS ADVISOR FUNDS APRIL 30, 2000
INTERNATIONAL EQUITY FUND
EMERGING MARKETS FUND
GLOBAL POST-VENTURE CAPITAL FUND
S
SEMIANNUAL REPORT
(Unaudited)
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 800-222-8977 or by writing to Warburg Pincus Advisor Funds,
P.O. Box 9030, Boston, MA 02205-9030.
(LOGO)
WARBURG PINCUS FUNDS PART OF CREDIT | ASSET
SUISSE | MANAGEMENT
[GRAPHIC OMITTED]
<PAGE>
FROM TIME TO TIME, THE FUNDS' INVESTMENT ADVISER AND CO-ADMINISTRATORS MAY WAIVE
SOME FEES AND/OR REIMBURSE SOME EXPENSES, WITHOUT WHICH PERFORMANCE WOULD BE
LOWER. WAIVERS AND/OR REIMBURSEMENTS ARE SUBJECT TO CHANGE.
RETURNS ARE HISTORICAL AND INCLUDE CHANGE IN SHARE PRICE AND REINVESTMENT OF
DIVIDENDS AND CAPITAL GAINS. PAST PERFORMANCE CANNOT GUARANTEE FUTURE RESULTS.
RETURNS AND SHARE PRICE WILL FLUCTUATE, AND REDEMPTION VALUE MAY BE MORE OR LESS
THAN ORIGINAL COST.
INTERNATIONAL INVESTING ENTAILS SPECIAL RISK CONSIDERATIONS, INCLUDING CURRENCY
FLUCTUATIONS, LOWER LIQUIDITY, ECONOMIC AND POLITICAL RISKS, AND DIFFERENCES IN
ACCOUNTING METHODS.
THE VIEWS OF THE FUNDS' MANAGEMENT ARE AS OF THE DATE OF THE LETTERS AND
PORTFOLIO HOLDINGS DESCRIBED IN THIS DOCUMENT ARE AS OF APRIL 30, 2000; THESE
VIEWS AND PORTFOLIO HOLDINGS MAY HAVE CHANGED SUBSEQUENT TO THESE DATES. NOTHING
IN THIS DOCUMENT IS A RECOMMENDATION TO PURCHASE OR SELL SECURITIES.
FUND SHARES ARE NOT DEPOSITS OR OTHER OBLIGATIONS OF CREDIT SUISSE ASSET
MANAGEMENT ("CSAM") OR ANY AFFILIATE, ARE NOT FDICINSURED AND ARE NOT GUARANTEED
BY CSAM OR ANY AFFILIATE. FUND INVESTMENTS ARE SUBJECT TO INVESTMENT RISKS,
INCLUDING LOSS OF YOUR INVESTMENT.
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WARBURG PINCUS INTERNATIONAL EQUITY FUND
SEMIANNUAL INVESTMENT ADVISER'S REPORT -- APRIL 30, 2000
--------------------------------------------------------------------------------
June 20, 2000
Dear Shareholder:
For the six months ended April 30, 2000, the Advisor Class shares of Warburg
Pincus International Equity Fund had a return of 12.64%, vs. a gain of 8.66% for
the Morgan Stanley All Country World Excluding the U.S. Index.* The Fund's
one-year return through April 30, 2000 was 34.13%. Its five-year, 10-year and
since-inception (on May 2, 1989) average annual total returns through April 30,
2000 were 10.92%, 11.12% and 11.70%, respectively.
International stock markets had generally good results for the period. Most
European markets advanced, some impressively, buoyed by an improving economic
outlook across the region. The group's returns were more modest for dollar-based
investors, however, as the euro and most other European currencies weakened vs.
the dollar during the period. Within Asia, Japan had a respectable showing,
though profit-taking roiled the market late in the period, with technology and
Internet-related names under especially heavy selling pressure. Asia's emerging
markets had mostly solid, though volatile, gains, as did emerging markets
generally. Other winners for the period included Canada, helped by firming
commodity prices.
The Fund had a good showing for the six months, both in absolute terms and
compared to that of its benchmark. The Fund benefited from good performances
from a number of its holdings, especially its technology and telecommunications
names. Also contributing positively to the Fund's return was its exposure to
certain strong-performing emerging markets (e.g., Turkey, Hungary and Taiwan)
and its significant weighting in Canada.
We made few noteworthy changes to the Fund during the period in terms of
overall sector strategy. We remained well-diversified, and maintained
significant exposure to both rapid-growth and economically sensitive, or
cyclical, segments of foreign markets. Such a "barbell" approach can serve to
limit volatility, given the seismic short-term shifts in investor sentiment that
can favor one group at the expense of the other. In addition, we believe that
having some economically sensitive investments makes sense when all three major
regions of the world are projected to grow.
In terms of regional/country allocation, the most notable move we made was to
reduce our exposure to Japan. We entered the period with a sizable overweighting
here, but assumed a roughly neutral position as the period progressed, based on
valuation considerations and on our desire to take advantage of opportunities we
saw developing elsewhere. That aside, we believe that a number of Japanese
stocks stand to benefit from ongoing reform--at both the macroeconomic and
corporate levels--and from trends such as Japan's continued embrace of equity
investing. We continued to
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WARBURG PINCUS INTERNATIONAL EQUITY FUND
SEMIANNUAL INVESTMENT ADVISER'S REPORT -- APRIL 30, 2000 (CONT'D)
--------------------------------------------------------------------------------
generally see the most compelling growth stories among Japan's technology,
communications and financial-services companies. Elsewhere of note in Asia, we
raised our weighting in South Korea, taking advantage of market volatility to
add a few technology stocks we viewed as good values.
Our increased weighting in Europe was largely via the U.K., based on
company-specific factors and on our belief that the country's interest-rate
backdrop will be more supportive going forward. We also modestly raised our
weightings in Italy and Sweden. Overall, we believe that Europe's equity markets
will continue to be supported over the longer term by an expanding economy, as
well as by a strong deregulation and privatization trend. Across the region,
monopolies are being transformed into competitive companies, benefiting
shareholders and consumers alike. Furthermore, the liberalization of certain
industries (e.g. telecommunications and utilities), combined with a single
currency environment, will prompt merger & acquisition activity, which has
surged dramatically over the past year and shows little sign of slowing.
Turning to the Americas, we had a meaningful weighting in Canada, one we
increased during the period, adding several technology and natural-resources
stocks we deemed to be attractive. Our exposure to Latin America remained
minimal, as we continued to find more-compelling stocks elsewhere, though we
will continue to monitor the area for buying opportunities.
Looking ahead to rest of 2000 and beyond, we see ample grounds for optimism
regarding international-equity markets, notwithstanding recent volatility in
stocks generally. Trends that stand to support foreign markets broadly include
the potential for continued, and synchronized, global economic growth as well as
improving financial conditions within emerging markets (many Asian emerging
economies, for example, have recently shifted from debtor to creditor status).
Set within this environment, we will continue our efforts to identify markets
and companies with the brightest long-term prospects.
Harold E. Sharon P. Nicholas Edwards
Co-Portfolio Manager Co-Portfolio Manager
Harold W. Ehrlich Vincent J. McBride
Co-Portfolio Manager Co-Portfolio Manager
INTERNATIONAL INVESTING ENTAILS SPECIAL RISK CONSIDERATIONS, INCLUDING
CURRENCY FLUCTUATIONS, LOWER LIQUIDITY, ECONOMIC AND POLITICAL RISKS, AND
DIFFERENCES IN ACCOUNTING METHODS.
--------------
* The Morgan Stanley All Country World Excluding the U.S. Index is a
market-capitalization-weighted index of companies listed on stock exchanges
outside of the United States.
2
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WARBURG PINCUS EMERGING MARKETS FUND
SEMIANNUAL INVESTMENT ADVISER'S REPORT -- APRIL 30, 2000
--------------------------------------------------------------------------------
June 20, 2000
Dear Shareholder:
For the six months ended April 30, 2000, the Advisor Class shares of Warburg
Pincus Emerging Markets Fund had a return of 22.26%, vs. a return of 13.87% for
the Morgan Stanley Capital International Emerging Markets Free Index.* The
Fund's one-year return through April 30, 2000 was 45.26%. Its five-year and
since-inception (on December 30, 1994) average annual returns through April 30,
2000 were 2.16% and 3.09%, respectively.
The period was a positive one for the majority of emerging stock markets,
though results varied by region. The best performances generally belonged to
Eastern/Central European markets, supported by growing optimism over their
economic and financial prospects. Most Asian markets also had good showings,
though these were volatile late in the period, buffeted by rounds of
profit-taking. Within Latin America, Brazil and Mexico, the region's dominant
markets, were notable winners. With regard to sector attribution, technology,
media and telecommunications ("TMT") stocks paced the rally in most markets.
However, TMT stocks finished the period on a very difficult note, in part
reflecting contagion from a downturn in the Nasdaq, the technology-biased U.S.
index.
Against this backdrop, the Fund had a good showing, both in absolute terms
and compared to that of its benchmark. The Fund saw good performances from a
number of its holdings, especially its technology and communications stocks. In
terms of regional attribution, factors that aided the Fund included its
overweighting in Turkey, one of the best-performing emerging stock markets for
the six months.
We made a few noteworthy changes to the Fund's regional and country exposure
during the period. Within Asia, changes worthy of mention included increasing
our exposure to Taiwan. Our focus here remained on hardware/electronics
companies well-positioned to take advantage of a strong global outsourcing
trend. Whereas hardware sales within many emerging markets is domestically
driven, Taiwan is a substantial exporter. As such, certain companies here stand
to continue to benefit from growing worldwide demand for Internet-related and
other hardware products. These companies, moreover, offer valuations that are
compelling vs. those on their developed-market counterparts. One country
weighting we reduced in Asia was South Korea. This partly reflected our concerns
over the country's technology sector, which tends to be particularly vulnerable
to Nasdaq volatility.
Within Eastern/Central Europe, we maintained an overweighting in Turkey,
reflecting our optimism over the country's ongoing IMF-sanctioned
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WARBURG PINCUS EMERGING MARKETS FUND
SEMIANNUAL INVESTMENT ADVISER'S REPORT -- APRIL 30, 2000 (CONT'D)
--------------------------------------------------------------------------------
financial reforms (though we scaled back this position late in the period based
on valuation considerations). We also established a modest position in Russia,
where we believe the macroeconomic and political environment is improving, some
near-term financial-market uncertainties notwithstanding. One weighting we pared
during the period was Hungary, an adjustment based on valuation concerns.
Our Latin America exposure remained concentrated on Mexico and Brazil. We
raised our exposure to the latter at the expense of the former during the
period, based on relative-valuation considerations, and on our view that Brazil
could see some better-than-expected developments on the inflation and
interest-rate front. Elsewhere in the region, we established a modest position
in Chile, whose macroeconomic backdrop continues to improve and where capital
controls could eventually be removed.
Looking ahead, we believe that the environment for emerging stock markets
will remain generally positive, supported by an improving global economy and
brightening earnings picture. These markets will likely remain quite volatile,
however. The recent turmoil in Nasdaq-type stocks could persist for a spell,
fueling frequent shifts in sentiment regarding global riskier asset classes in
general. In addition, certain emerging markets remain vulnerable to
interest-rate uncertainties (though we note that interest rates in most
emerging-market economies are well below levels seen 18 months ago). Still, we
see ample grounds for optimism, with numerous emerging-market companies poised
for revenue and earnings improvements. As ever, our efforts, within this
underfollowed asset class, will remain devoted to identifying countries and
companies with the best long-term growth potential.
Richard Watt
Portfolio Manager
INTERNATIONAL INVESTING ENTAILS SPECIAL RISK CONSIDERATIONS, INCLUDING
CURRENCY FLUCTUATIONS, LOWER LIQUIDITY, ECONOMIC AND POLITICAL RISKS, AND
DIFFERENCES IN ACCOUNTING METHODS; THESE RISKS ARE GENERALLY HEIGHTENED FOR
EMERGING-MARKET INVESTMENTS.
--------------
* The Morgan Stanley Capital International Emerging Markets Free Index is a
market-capitalization-weighted index of emerging-market countries determined
by Morgan Stanley. The index includes only those countries open to non-local
investors.
4
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WARBURG PINCUS GLOBAL POST-VENTURE CAPITAL FUND
SEMIANNUAL INVESTMENT ADVISER'S REPORT -- APRIL 30, 2000
--------------------------------------------------------------------------------
June 20, 2000
Dear Shareholder:
For the six months ended April 30, 2000, the Advisor Class shares of Warburg
Pincus Global Post-Venture Capital Fund had a gain of 73.15%, vs. gains of
17.81% for the Lipper Global Funds Index,* 6.96% for the Morgan Stanley Capital
International World Index** and 27.78% for the Russell 2000 Growth Index.*** The
Fund's one-year return through April 30, 2000 was 113.80%. Its since-inception
(on September, 30 1996) average annual total return through April 30, 2000 was
44.13%.
The period was a positive one for global stock markets, with performance
varying by region. Most European markets advanced, some significantly, and Japan
and the U.S. saw good results as well. The majority of emerging markets rallied,
buoyed by a continued general improvement in these markets' economic and
financial backdrops. However, the period was a volatile one for equities
generally, reflecting ongoing inflation and interest-rate uncertainties and
concerns over valuations on technology stocks, which ended the period on a very
difficult note in most markets.
Against this backdrop, the Fund had a strong gain, and outpaced its
benchmarks by sizable margins. The Fund saw good showings from a number of its
holdings, including its U.S. and European computer and media names as well as
specific Asian semiconductor stocks. Other holdings that contributed positively
to the Fund's return included certain financial and consumer stocks.
We made no substantial changes to the Fund in terms of overall strategy,
notwithstanding the merger of the Fund with its domestic-focused sibling,
Warburg Pincus Post-Venture Capital Fund, during the period. Indeed, for the
most part, the two funds have shared a common team of analysts and portfolio
managers, and have employed the same basic themes. Our focus remained on
well-managed, well-financed companies with innovative products and services,
especially those with competitive advantages in the technology area, broadly
defined.
We continued to find attractive buying opportunities across a wide variety of
industries. These included a number of foreign stocks (foreign companies
accounted for a little more than 40% of the Fund as of the end of the period).
Within Europe, our purchases included a German manufacturer of specialty-
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WARBURG PINCUS GLOBAL POST-VENTURECAPITAL FUND
SEMIANNUAL INVESTMENT ADVISER'S REPORT -- APRIL 30, 2000 (CONT'D)
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electronics products whose operations include a venture-capital division; a
German software company backed by 3i Group, the U.K.'s leading venture-capital
investor; and an Italian life-insurance company that recently came to market as
a spin-off and is growing rapidly.
We also established positions in a number of Asian names, including a
Japanese broker that is merging with another mid-sized brokerage firm, an event
that stands to significantly improve its earnings prospects. Our other Asian
purchases included several venture-backed South Korean technology companies
recently listed on the KOSDAQ. Since its launch in 1997, the technology-biased
exchange has facilitated the growth of numerous innovative, smaller companies in
an economy long dominated by huge conglomerates.
Within the U.S., our general bias remained in favor of software and
Internet-infrastructure companies. That said, we added some "value" U.S. stocks
that we deemed to be compelling, including a specialty-retail company. Turning
north, we established positions in a few Canadian companies during the period,
focusing on the natural-resources and technology areas, where we generally saw
the best values here.
Looking ahead, we are likely to continue to raise the Fund's weighting in
foreign stocks, given a strong and rising trend of venture-capital activity
abroad and the relatively attractive valuations at which many of these
underfollowed stocks trade. We feel opportunity within the U.S. should remain
abundant. Assets in domestic venture pools stand at record levels, and we
believe that venture capitalists remain eager to invest in highly innovative
U.S. companies. Within this environment, our focus will remain on global stocks
we deem to have the best long-term growth prospects.
Elizabeth B. Dater Harold E. Sharon
Co-Portfolio Manager Co-Portfolio Manager
Federico D. Laffan Jun Sung Kim
Co-Portfolio Manager Co-Portfolio Manager
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WARBURG PINCUS GLOBAL POST-VENTURE CAPITAL FUND
SEMIANNUAL INVESTMENT ADVISER'S REPORT -- APRIL 30, 2000 (CONT'D)
--------------------------------------------------------------------------------
INTERNATIONAL INVESTING ENTAILS SPECIAL RISK CONSIDERATIONS, INCLUDING
CURRENCY FLUCTUATIONS, LOWER LIQUIDITY, ECONOMIC AND POLITICAL RISKS, AND
DIFFERENCES IN ACCOUNTING METHODS. THERE ARE ALSO SPECIAL RISK CONSIDERATIONS
ASSOCIATED WITH POST-VENTURE-CAPITAL INVESTMENTS. THESE ARE DETAILED IN THE
FUND'S PROSPECTUS, WHICH SHOULD BE READ CAREFULLY BEFORE INVESTING.
--------------
* The Lipper Global Funds Index is an equal-weighted performance index,
adjusted for capital-gain distributions and income dividends, of the largest
qualifying funds within this investment objective, and is compiled by Lipper
Inc.
** The Morgan Stanley Capital International World Index is a market-weighted
average of the performance of securities listed on the stock exchanges of
all developed countries.
*** The Russell 2000 Growth Index is an unmanaged index (with no defined
investment objective) of those securities in the Russell 2000 Index with a
greater-than-average growth orientation. It includes reinvestment of
dividends, and is compiled by Frank Russell Company.
7
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WARBURG PINCUS INTERNATIONAL EQUITY FUND
SCHEDULE OF INVESTMENTS--APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
------- -----
COMMON STOCKS (85.8%)
CANADA (6.5%)
COMMUNICATIONS EQUIPMENT (0.3%)
Research in Motion, Ltd.(DAGGER) 82,192 $ 3,489,246
--------------
DIVERSIFIED TELECOMMUNICATION SERVICES (0.7%)
OCI Communications, Inc.(DAGGER) 780,700 8,483,235
--------------
MEDIA (1.3%)
Rogers Communications, Inc. Class B(DAGGER) 640,000 16,651,593
--------------
OIL & GAS (2.4%)
Anderson Exploration, Ltd.(DAGGER) 424,800 6,794,919
Berkley Petroleum Corp.(DAGGER) 544,300 3,765,422
Canadian Hunter Exploration, Ltd.(DAGGER) 234,300 4,435,643
Canadian Natural Resources, Ltd.(DAGGER) 418,000 11,143,582
Precision Drilling Corp.(DAGGER) 97,700 3,105,753
--------------
29,245,319
--------------
SOFTWARE (1.8%)
Descartes Systems Group, Inc.(DAGGER) 638,200 21,945,851
--------------
TOTAL CANADA 79,815,244
--------------
DENMARK (0.8%)
DIVERSIFIED TELECOMMUNICATION SERVICES (0.8%)
Tele Danmark AS Class B 137,000 10,047,377
--------------
TOTAL DENMARK 10,047,377
--------------
FINLAND (2.0%)
COMMUNICATIONS EQUIPMENT (1.8%)
Nokia Oyj Class A 392,000 22,540,027
--------------
IT CONSULTING & SERVICES (0.2%)
Stonesoft Oyj(DAGGER) 134,300 2,508,816
--------------
TOTAL FINLAND 25,048,843
--------------
FRANCE (7.9%)
BANKS (0.4%)
Banque Nationale de Paris 67,600 5,476,303
--------------
CONSTRUCTION & ENGINEERING (1.6%)
Societe Generale d'Enterprises SA(DAGGER) 492,700 19,305,899
--------------
ENERGY EQUIPMENT & SERVICES (0.3%)
Coflexip SA 18,800 1,833,077
Coflexip SA ADR 39,100 1,984,325
--------------
3,817,402
--------------
MEDIA (1.4%)
Publicis SA 6,025 2,931,820
Lagardere Groupe SCA 218,400 14,826,816
--------------
17,758,636
--------------
METALS & MINING (1.2%)
Pechiney SA Class A 330,000 14,494,391
--------------
See Accompanying Notes to Financial Statements.
8
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WARBURG PINCUS INTERNATIONAL EQUITY FUND
SCHEDULE OF INVESTMENTS (CONT'D)--APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
------- -----
COMMON STOCKS (CONT'D)
FRANCE (cont'd)
MULTILINE UTILITIES (1.5%)
Vivendi 188,900 $ 18,728,365
--------------
OIL & GAS (1.5%)
Total Fina Elf SA 124,607 18,951,246
--------------
TOTAL FRANCE 98,532,242
--------------
GERMANY (3.5%)
ELECTRIC UTILITIES (0.8%)
Viag AG 528,400 10,207,930
--------------
INDUSTRIAL CONGLOMERATES (2.2%)
Siemens AG 182,600 27,005,878
--------------
INSURANCE (0.5%)
Hannover Rueckversicherungs AG 94,600 6,034,318
--------------
TOTAL GERMANY 43,248,126
--------------
HONG KONG (1.2%)
WIRELESS TELECOMMUNICATION SERVICES (1.2%)
China Telecom, Ltd.(DAGGER) 1,600,000 11,554,786
SmarTone Telecommunications Holdings, Ltd. 1,268,639 3,974,178
--------------
15,528,964
--------------
TOTAL HONG KONG 15,528,964
--------------
HUNGARY (1.4%)
BANKS (0.9%)
OTP Bank 239,100 10,617,552
--------------
DIVERSIFIED TELECOMMUNICATION SERVICES (0.5%)
Magyar Tavkozlesi 836,600 5,741,281
--------------
TOTAL HUNGARY 16,358,833
--------------
INDIA (1.3%)
BANKS (0.0%)
State Bank of India, Ltd. 6,250 29,801
--------------
CHEMICALS (0.0%)
Reliance Industries, Ltd. 11,974 95,148
--------------
DIVERSIFIED TELECOMMUNICATION SERVICES (0.0%)
Mahanagar Telephone Nigam, Ltd. 300 1,546
--------------
IT CONSULTING & SERVICES (0.7%)
NIIT, Ltd. 176,800 8,261,660
--------------
METALS & MINING (0.0%)
Hindalco Industries, Ltd. 203 3,278
--------------
OIL & GAS (0.0%)
Bharat Petroleum Corp., Ltd. 200 800
--------------
See Accompanying Notes to Financial Statements.
9
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WARBURG PINCUS INTERNATIONAL EQUITY FUND
SCHEDULE OF INVESTMENTS (CONT'D)--APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
------- -----
COMMON STOCKS (CONT'D)
INDIA (cont'd)
SOFTWARE (0.6%)
Aptech, Ltd. 190,264 $ 7,932,003
--------------
TOTAL INDIA 16,324,236
--------------
IRELAND (0.6%)
BANKS (0.6%)
Bank of Ireland
0.016% 1,093,659 7,394,773
--------------
TOTAL IRELAND 7,394,773
--------------
ITALY (4.9%)
DIVERSIFIED TELECOMMUNICATION SERVICES (2.2%)
Olivetti SpA(DAGGER) 3,100,000 10,282,580
Telecom Italia SpA 1,260,900 17,671,604
--------------
27,954,184
--------------
MEDIA (1.7%)
SEAT Pagine Gialle SpA 4,908,932 21,605,939
--------------
TRANSPORTATION INFRASTRUCTURE (0.9%)
Concessioni e Costruzioni Autostrade SpA 1,663,200 11,230,567
--------------
TOTAL ITALY 60,790,690
--------------
JAPAN (21.5%)
CHEMICALS (0.6%)
Asahi Chemical Industry Co., Ltd. 1,320,000 7,597,188
--------------
DIVERSIFIED FINANCIALS (4.3%)
Daiwa Securities Co., Ltd. 756,000 11,542,351
Nikko Securities Co., Ltd. 950,000 11,207,850
Nomura Securities Co., Ltd. 418,000 10,520,436
Orix Corp. 86,400 12,327,831
Shinko Securities Co., Ltd. 1,791,000 7,838,722
--------------
53,437,190
--------------
DIVERSIFIED TELECOMMUNICATION SERVICES (2.4%)
DDI Corp. 860 9,867,535
Japan Telecom Co., Ltd. 120 6,107,064
KDD Corp. 122,800 14,226,276
--------------
30,200,875
--------------
ELECTRICAL EQUIPMENT (1.8%)
Furukawa Electric Co., Ltd. 1,650,000 22,886,223
--------------
HEALTH CARE EQUIPMENT & SUPPLIES (1.6%)
Hoya Corp. 197,000 20,051,527
--------------
HOUSEHOLD DURABLES (2.8%)
Sharp Corp. 1,076,000 20,759,021
Sony Corp. 125,000 14,353,914
--------------
35,112,935
--------------
See Accompanying Notes to Financial Statements.
10
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WARBURG PINCUS INTERNATIONAL EQUITY FUND
SCHEDULE OF INVESTMENTS (CONT'D)--APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
------- -----
COMMON STOCKS (CONT'D)
JAPAN (cont'd)
INTERNET SOFTWARE & SERVICES (1.5%)
Softbank Corp. 25,300 $ 6,227,170
Softbank Corp. (new) 50,600 12,501,160
--------------
18,728,330
--------------
SEMICONDUCTOR EQUIPMENT & PRODUCTS (4.5%)
Rohm Co., Ltd. 54,100 18,121,510
Tokyo Electron, Ltd. 131,000 21,346,132
Tokyo Seimitsu Co., Ltd. 158,000 16,520,534
--------------
55,988,176
--------------
WIRELESS TELECOMMUNICATION SERVICES (2.0%)
NTT DoCoMo, Inc. 750 25,052,842
--------------
TOTAL JAPAN 269,055,286
--------------
MEXICO (0.3%)
BANKS (0.3%)
Grupo Financiero Banamex Accival SA de CV 1,200,000 4,334,330
--------------
TOTAL MEXICO 4,334,330
--------------
NETHERLANDS (1.5%)
DIVERSIFIED TELECOMMUNICATION SERVICES (0.1%)
Completel Europe NV(DAGGER) 70,000 1,231,103
--------------
MACHINERY (0.6%)
IHC Caland NV 190,000 7,704,645
--------------
MEDIA (0.8%)
Verenigde Nederlandse Uitgeversbedrijven
Verenigd Bezit 191,700 10,280,342
--------------
TOTAL NETHERLANDS 19,216,090
--------------
PORTUGAL (1.6%)
DIVERSIFIED TELECOMMUNICATION SERVICES (1.6%)
Portugal Telecom SA 1,829,100 20,451,304
--------------
TOTAL PORTUGAL 20,451,304
--------------
SINGAPORE (2.3%)
BANKS (0.8%)
Overseas Union Bank, Ltd. 2,194,288 10,024,040
--------------
COMPUTERS & PERIPHERALS (0.6%)
National Steel Electronics Co. 1,261,000 7,237,619
--------------
ELECTRONIC EQUIPMENT & INSTRUMENTS (0.3%)
Venture Manufacturing, Ltd. 339,000 3,970,857
--------------
MARINE (0.6%)
Neptune Orient Lines, Ltd.(DAGGER) 8,039,000 7,203,574
--------------
TOTAL SINGAPORE 28,436,090
--------------
See Accompanying Notes to Financial Statements.
11
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WARBURG PINCUS INTERNATIONAL EQUITY FUND
SCHEDULE OF INVESTMENTS (CONT'D)--APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
------- -----
COMMON STOCKS (CONT'D)
SOUTH KOREA (5.7%)
BANKS (0.5%)
Shinhan Bank 702,350 $ 6,740,497
--------------
HOUSEHOLD DURABLES (0.2%)
Telson Electronics Co., Ltd.(DAGGER) 137,000 1,962,937
--------------
INTERNET SOFTWARE & SERVICES (0.0%)
Daum Communications Corp.(DAGGER) 11,500 544,059
--------------
MEDIA (0.6%)
Cheil Communications, Inc.(DAGGER) 70,000 7,348,736
--------------
SEMICONDUCTOR EQUIPMENT & PRODUCTS (2.1%)
Samsung Electronics Co. 97,200 26,277,027
--------------
WIRELESS TELECOMMUNICATION SERVICES (2.3%)
SK Telecom Co., Ltd. 58,000 15,418,379
SK Telecom Co., Ltd. ADR 403,100 12,924,394
--------------
28,342,773
--------------
TOTAL SOUTH KOREA 71,216,029
--------------
SPAIN (1.7%)
BANKS (1.0%)
Banco Bilbao Vizcaya Argentaria SA 900,000 12,301,916
--------------
FOOD & DRUG RETAILING (0.7%)
Centros Comerciales Continente SA 280,610 4,372,585
Centros Comerciales Pryca SA 357,830 4,340,041
--------------
8,712,626
--------------
TOTAL SPAIN 21,014,542
--------------
SWEDEN (4.6%)
BANKS (1.2%)
Nordic Baltic Holding AB 2,285,400 14,423,018
--------------
COMMUNICATIONS EQUIPMENT (1.7%)
Telefonaktiebolaget LM Ericsson ADR 238,800 21,118,875
--------------
CONTAINERS & PACKAGING (0.6%)
Assidoman AB 436,500 7,215,916
--------------
MACHINERY (1.1%)
SKF AB Series B 620,100 13,298,677
--------------
TOTAL SWEDEN 56,056,486
--------------
SWITZERLAND (0.8%)
PHARMACEUTICALS (0.8%)
Roche Holding AG 941 9,850,396
--------------
TOTAL SWITZERLAND 9,850,396
--------------
See Accompanying Notes to Financial Statements.
12
<PAGE>
WARBURG PINCUS INTERNATIONAL EQUITY FUND
SCHEDULE OF INVESTMENTS (CONT'D)--APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
------- -----
COMMON STOCKS (CONT'D)
TAIWAN (3.0%)
ELECTRIC EQUIPMENT (0.7%)
Siliconware Corp.(DAGGER) 5,259,000 $ 8,931,151
--------------
SEMICONDUCTOR EQUIPMENT & PRODUCTS (2.3%)
Taiwan Semiconductor Manufacturing Co.(DAGGER) 3,099,850 19,943,796
United Microelectronics Co., Ltd.(DAGGER) 2,500,000 8,450,478
--------------
28,394,274
--------------
TOTAL TAIWAN 37,325,425
--------------
TURKEY (0.6%)
BANKS (0.6%)
Yapi Ve Kredi Bankasi AS 245,302,200 7,831,478
--------------
TOTAL TURKEY 7,831,478
--------------
UNITED KINGDOM (12.1%)
AEROSPACE & DEFENSE (1.3%)
British Aerospace PLC 2,619,341 16,149,060
--------------
BANKS (1.8%)
Bank of Scotland 2,450,000 21,833,263
--------------
DIVERSIFIED TELECOMMUNICATION SERVICES (1.5%)
British Telecommunications PLC 1,060,197 19,095,047
--------------
ENERGY SOURCES (1.2%)
BP Amoco PLC 1,699,000 14,741,910
--------------
INSURANCE (0.9%)
Prudential PLC 749,907 11,570,261
--------------
MEDIA (0.9%)
Reed International PLC 1,674,500 11,647,045
--------------
PHARMACEUTICALS (2.2%)
Astrazeneca Group PLC 367,400 15,459,263
Smithkline Beecham PLC 853,800 11,736,990
--------------
27,196,253
--------------
WIRELESS TELECOMMUNICATION SERVICES (2.3%)
Vodafone AirTouch PLC 6,132,318 28,259,782
--------------
TOTAL UNITED KINGDOM 150,492,621
--------------
TOTAL COMMON STOCKS (Cost $882,430,264) 1,068,369,405
--------------
See Accompanying Notes to Financial Statements.
13
<PAGE>
WARBURG PINCUS INTERNATIONAL EQUITY FUND
SCHEDULE OF INVESTMENTS (CONT'D)--APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
------- -----
PREFERRED STOCKS (1.3%)
GERMANY (1.3%)
HEALTH CARE PROVIDERS & SERVICES (0.6%)
Fresenius Medical Care AG ADR 472,999 $ 6,976,735
--------------
INSURANCE (0.7%)
Marschollek, Lautenschlaeger und Partner AG 15,400 8,167,379
--------------
TOTAL GERMANY 15,144,114
--------------
TOTAL PREFERRED STOCKS (Cost $11,550,134) 15,144,114
--------------
WARRANTS (1.3%)
CANADA (1.3%)
DIVERSIFIED TELECOMMUNCATION SERVICES (1.0%)
OCI Communications, Inc.(DAGGER) 1,076,000 11,692,021
--------------
INTERNET SOFTWARE & SERVICES (0.3%)
Wysdom Private Placement(DAGGER) 365,254 4,163,896
--------------
TOTAL CANADA 15,855,917
--------------
TOTAL WARRANTS (Cost $17,450,216) 15,855,917
--------------
SHORT-TERM INVESTMENTS (7.4%)
Institutional Money Market Trust 32,844,697 32,844,697
RBB Select Sweep 58,629,036 58,629,036
--------------
TOTAL SHORT-TERM INVESTMENTS (Cost $91,473,733) 91,473,733
--------------
TOTAL INVESTMENTS AT VALUE (95.8%) (Cost $1,002,904,347*) 1,190,843,169
OTHER ASSETS IN EXCESS OF LIABILITIES (4.2%) 51,907,838
--------------
NET ASSETS (100.0%) $1,242,751,007
==============
INVESTMENT ABBREVIATIONS
ADR = American Depository Receipt
--------------------------------------------------------------------------------
(DAGGER) Non-income producing security.
* Also cost for federal income tax purposes is $1,002,904,347.
See Accompanying Notes to Financial Statements.
14
<PAGE>
WARBURG PINCUS EMERGING MARKETS FUND
SCHEDULE OF INVESTMENTS--APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
------- -----
COMMON STOCKS (76.9%)
AUSTRALIA (0.0%)
OIL & GAS (0.0%)
Novus Petroleum, Ltd. 682 $ 557
-----------
TOTAL AUSTRALIA 557
-----------
BRAZIL (8.3%)
BANKS (0.9%)
Uniao de Bancos Brasileiros SA GDR 31,670 789,771
-----------
BEVERAGES (0.8%)
Companhia Cervejaria Brahma ADR 46,700 723,850
-----------
DIVERSIFIED TELECOMMUNICATION SERVICES (5.0%)
Embratel Participacoes SA ADR(DAGGER) 64,700 1,455,750
Tele Centro Sul Participacoes SA ADR 18,700 1,192,125
Tele Norte Leste Participacoes SA ADR 76,855 1,368,980
Telecommunications de Sao Paulo SA ADR 21,000 530,250
-----------
4,547,105
-----------
FOOD & DRUG RETAILING (0.9%)
Companhia Brasileira de Distribuicao Grupo Pao
de Acucar ADR 29,230 833,055
-----------
PAPER & FOREST PRODUCTS (0.7%)
Aracruz Celulose ADR 34,400 642,850
-----------
TOTAL BRAZIL 7,536,631
-----------
CHILE (1.4%)
DIVERSIFIED TELECOMMUNICATION SERVICES (1.4%)
Companhia de Telecomunicaciones de Chile SA ADR 70,300 1,300,550
-----------
TOTAL CHILE 1,300,550
-----------
CHINA (2.6%)
CHEMICALS (1.8%)
Yizheng Chemical Fibre Co., Ltd.(DAGGER) 8,570,000 1,661,411
-----------
ELECTRIC UTILITIES (0.8%)
Huaneng Power International, Inc. ADR 79,200 732,600
-----------
TOTAL CHINA 2,394,011
-----------
EGYPT (0.1%)
BANKS (0.1%)
Commercial International Bank, Ltd. 26 283
Mibbank International 5,410 90,782
-----------
91,065
-----------
TOTAL EGYPT 91,065
-----------
GREECE (0.5%)
DIVERSIFIED TELECOMMUNICATION SERVICES (0.5%)
Hellenic Telecommunication Organization
SA ADR(DAGGER) 39,601 462,837
-----------
TOTAL GREECE 462,837
-----------
See Accompanying Notes to Financial Statements.
15
<PAGE>
WARBURG PINCUS EMERGING MARKETS FUND
SCHEDULE OF INVESTMENTS (CONT'D)--APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
------- -----
COMMON STOCKS (CONT'D)
HONG KONG (5.9%)
COMPUTERS & PERIPHERALS (1.6%)
Legend Holdings, Ltd. 1,248,000 $ 1,450,049
-----------
DIVERSIFIED FINANCIALS (0.0%)
Beijing Enterprises Holding Co.(DAGGER) 11,100 12,113
-----------
HOUSEHOLD DURABLES (0.0%)
Guangdong Kelon Electrical Holdings Co., Ltd. 40,738 25,366
-----------
INTERNET SOFTWARE & SERVICES (0.3%)
Pacific Century Cyberworks, Ltd.(DAGGER) 163,000 303,442
-----------
PERSONAL PRODUCTS (0.0%)
Li & Fung, Ltd. 10,000 38,644
-----------
WIRELESS TELECOMMUNICATION SERVICES (4.0%)
China Telecommunications, Ltd. ADR 16,100 2,361,669
China Telecommunications, Ltd.(DAGGER) 176,000 1,271,026
-----------
3,632,695
-----------
TOTAL HONG KONG 5,462,309
-----------
HUNGARY (1.1%)
BANKS (0.3%)
OTP Bank 5,364 238,196
OTP Bank Rt. GDR 144A 1,400 62,169
-----------
300,365
-----------
DIVERSIFIED TELECOMMUNICATION SERVICES (0.6%)
Matav RT ADR 14,800 515,225
-----------
OIL & GAS (0.0%)
MOL Magyar Olaj - Es Gazipari 1,100 19,415
-----------
PHARMACEUTICALS (0.2%)
Gedeon Richter 3,000 166,500
-----------
TOTAL HUNGARY 1,001,505
-----------
INDIA (5.7%)
AUTOMOBILES (0.0%)
Mahindra & Mahindra, Ltd. 1,750 10,665
Mahindra & Mahindra, Ltd. GDR 2,000 13,500
-----------
24,165
-----------
BANKS (0.0%)
State Bank of India, Ltd. GDR 1,600 15,200
-----------
BEVERAGES (0.1%)
ITC Agro-Tech, Ltd. GDR(DAGGER) 2,200 37,510
-----------
See Accompanying Notes to Financial Statements.
16
<PAGE>
WARBURG PINCUS EMERGING MARKETS FUND
SCHEDULE OF INVESTMENTS (CONT'D)--APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
------- -----
COMMON STOCKS (CONT'D)
INDIA (cont'd)
CHEMICALS (0.2%)
Grasim Industries, Ltd. 500 $ 4,123
Reliance Industries, Ltd. 4,659 37,021
Reliance Industries, Ltd. GDR 4,304 112,012
-----------
153,156
-----------
DIVERSIFIED FINANCIALS (1.0%)
Icici, Ltd.(DAGGER) 34,600 877,975
Morgan Stanley India Investment Fund, Inc. 100 1,212
-----------
879,187
-----------
DIVERSIFIED TELECOMMUNICATION SERVICES (0.6%)
Videsh Sanchar Nigam, Ltd. 30,800 585,200
-----------
GAS UTILITIES (0.0%)
Gas Authority of India, Ltd. 2,400 15,600
-----------
INDUSTRIAL CONGLOMERATES (0.0%)
Larsen & Toubro, Ltd. GDR 1,800 24,750
Larsen & Toubro, Ltd. 2,093 11,195
-----------
35,945
-----------
INTERNET & SOFTWARE SERVICES (0.1%)
SSI, Ltd.(DAGGER) 8,400 73,500
-----------
IT CONSULTING & SERVICES (1.3%)
Aptech, Ltd. 27,730 1,156,049
-----------
METALS & MINING (0.1%)
Hindalco Industries, Ltd. 4,000 68,000
-----------
OIL & GAS (0.1%)
Hindustan Petroleum Corp., Ltd. 32,400 83,011
-----------
PHARMACEUTICALS (0.1%)
Ranbaxy Laboratories, Ltd. 2,800 53,410
-----------
SOFTWARE (2.1%)
Pentamedia Graphics, Ltd. 41,777 608,146
Satyam Computers 18,600 1,329,298
-----------
1,937,444
-----------
TOTAL INDIA 5,117,377
-----------
ISRAEL (0.5%)
IT CONSULTING & SERVICES (0.5%)
Check Point Software Technologies, Ltd. 2,536 438,728
-----------
TOTAL ISRAEL 438,728
-----------
See Accompanying Notes to Financial Statements.
17
<PAGE>
WARBURG PINCUS EMERGING MARKETS FUND
SCHEDULE OF INVESTMENTS (CONT'D)--APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
------- -----
COMMON STOCKS (CONT'D)
MALAYSIA (9.8%)
BANKS (2.5%)
Commerce Asset Holdings BHD 172,300 $ 485,172
Malayan Banking BHD 303,000 1,259,872
Public Bank 368,476 513,939
-----------
2,258,983
-----------
DIVERSIFIED FINANCIALS (0.5%)
AMMB Holdings Berhad 123,378 467,549
-----------
DIVERSIFIED TELECOMMUNICATION SERVICES (1.0%)
Telekom Malaysia Berhad 252,000 875,389
-----------
ELECTRIC UTILITIES (1.1%)
Tenaga Nasional BHD 309,000 1,024,603
-----------
HOTELS RESTAURANTS & LEISURE (3.7%)
Berjaya Sports Toto 181,000 378,680
Genting Berhad 154,440 621,839
Resorts World 417,000 1,349,795
Tanjong PLC 368,000 1,016,866
-----------
3,367,180
-----------
MEDIA (0.6%)
New Straits Times Press 165,278 552,390
-----------
SEMICONDUCTOR EQUIPMENT & PRODUCTS (0.4%)
Unisem (M) Berhad 39,100 347,278
-----------
TOTAL MALAYSIA 8,893,372
-----------
MEXICO (7.0%)
BANKS (0.5%)
Grupo Financiero Banamex Accival SA de CV 112,809 407,459
-----------
BEVERAGES (1.8%)
Coca-Cola Femsa SA ADR 4,063 75,419
Fomento Economico Mexicano SA de CV ADR(DAGGER) 36,400 1,501,500
Grupo Modelo SA de CV Class C 24,284 51,596
-----------
1,628,515
-----------
CONSTRUCTION MATERIALS (0.9%)
Cemex SA de CV ADR(DAGGER) 38,730 847,219
-----------
DIVERSIFIED TELECOMMUNICATION SERVICES (2.7%)
Carso Global Telecom SA 164,872 437,874
Telefonos de Mexico SA ADR 33,600 1,976,100
-----------
2,413,974
-----------
MEDIA (0.1%)
Grupo Televisa SA 2,000 126,875
-----------
MULTILINE RETAIL (0.1%)
Wal-Mart de Mexico SA de CV 4,600 106,531
-----------
See Accompanying Notes to Financial Statements.
18
<PAGE>
WARBURG PINCUS EMERGING MARKETS FUND
SCHEDULE OF INVESTMENTS (CONT'D)--APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
------- -----
COMMON STOCKS (CONT'D)
MEXICO (cont'd)
PAPER & FOREST PRODUCTS (0.1%)
Kimberly-Clark de Mexico SA de CV Class A 13,417 $ 43,188
-----------
WIRELESS TELECOMMUNICATION SERVICES (0.8%)
Grupo Iusacell SA ADR Series V(DAGGER) 46,727 744,712
-----------
TOTAL MEXICO 6,318,473
-----------
RUSSIA (1.2%)
ELECTRIC UTILITIES (0.3%)
Unified Energy Systems ADR 15,700 292,648
-----------
OIL & GAS (0.9%)
Lukoil Holding ADR 7,300 440,044
Surgutneftegaz ADR 22,300 338,402
-----------
778,446
-----------
TOTAL RUSSIA 1,071,094
-----------
SINGAPORE (0.0%)
BANKS (0.0%)
Overseas Chinese Banking Corp., Ltd. 242 1,658
-----------
MEDIA (0.0%)
Singapore Press Holdings, Ltd. 39 763
-----------
TOTAL SINGAPORE 2,421
-----------
SOUTH AFRICA (6.1%)
BANKS (0.5%)
African Bank Investments, Ltd. 221,300 478,229
Standard Bank Investment Corp., Ltd. 1,300 4,794
-----------
483,023
-----------
BEVERAGES (0.2%)
South African Breweries PLC 18,791 138,592
-----------
DIVERSIFIED FINANCIALS (1.4%)
Johnnies Industrial Corp., Ltd. 22,994 339,181
Rembrant Group, Ltd. 114,700 889,951
-----------
1,229,132
-----------
HOUSEHOLD DURABLES (0.0%)
JD Group, Ltd. 400 2,696
-----------
INDUSTRIAL CONGLOMERATES (0.8%)
Imperial Holdings, Ltd. 86,904 743,507
-----------
INSURANCE (1.2%)
Liberty Life Association of Africa, Ltd. 139 1,302
Sanlam, Ltd.(DAGGER) 930,008 1,104,332
-----------
1,105,634
-----------
See Accompanying Notes to Financial Statements.
19
<PAGE>
WARBURG PINCUS EMERGING MARKETS FUND
SCHEDULE OF INVESTMENTS (CONT'D)--APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
------- -----
COMMON STOCKS (CONT'D)
SOUTH AFRICA (cont'd)
IT CONSULTING & SERVICES (0.5%)
Comparex Holdings, Ltd. 10,700 $ 16,020
Dimension Data Holdings, Ltd.(DAGGER) 61,093 401,022
-----------
417,042
-----------
METALS & MINING (0.3%)
Impala Platinum Holdings, Ltd. 8,900 282,258
-----------
PAPER & FOREST PRODUCTS (1.2%)
Sappi, Ltd.(DAGGER) 153,482 1,075,395
-----------
TOTAL SOUTH AFRICA 5,477,279
-----------
SOUTH KOREA (10.1%)
BANKS (1.0%)
Housing & Commercial Bank of Korea GDR# 1,827 31,470
Housing & Commercial Bank of Korea 49,005 839,040
-----------
870,510
-----------
BEVERAGES (0.0%)
Hite Brewery Co., Ltd. 2 57
-----------
CHEMICALS (1.0%)
LG Chemical, Ltd. 38,000 873,197
-----------
CONSTRUCTION & ENGINEERING (0.1%)
Daelim Industrial Co., Ltd. 13,952 77,824
-----------
DIVERSIFIED TELECOMMUNICATION SERVICES (1.4%)
Dacom Corp. 1,700 246,640
Korea Telecom Corp.(DAGGER) 14,000 956,282
Korea Telecom Corp. ADR(DAGGER) 1,800 62,100
-----------
1,265,022
-----------
ELECTRIC UTILITIES (1.4%)
Korea Electric Power Corp. 41,000 1,200,759
Korea Electric Power Corp. ADR 2,600 42,575
-----------
1,243,334
-----------
HOUSEHOLD DURABLES (0.6%)
LG Electronics 19,944 531,977
LG Electronics GDR 2,400 32,100
-----------
564,077
-----------
MEDIA (0.5%)
Cheil Communications, Inc. 3,954 415,099
-----------
METALS & MINING (0.9%)
Pohang Iron & Steel Co., Ltd. 10,000 799,782
Pohang Iron & Steel Co., Ltd. ADR 1,100 23,100
-----------
822,882
-----------
See Accompanying Notes to Financial Statements.
20
<PAGE>
WARBURG PINCUS EMERGING MARKETS FUND
SCHEDULE OF INVESTMENTS (CONT'D)--APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
------- -----
COMMON STOCKS (CONT'D)
SOUTH KOREA (cont'd)
SEMICONDUCTOR EQUIPMENT & PRODUCTS (2.3%)
Samsung Electronics Co., Ltd. 7,747 $ 2,094,322
-----------
WIRELESS TELECOMMUNICATION SERVICES (0.9%)
Sk Telecom Co., Ltd. 3,040 808,136
-----------
TOTAL SOUTH KOREA 9,034,460
-----------
TAIWAN (9.7%)
INTERNET SOFTWARE & SERVICES (0.5%)
GigaMedia, Ltd. 17,600 422,400
-----------
SEMICONDUCTOR EQUIPMENT & PRODUCTS (9.2%)
Hon Hai Precision Industry Co., Ltd. ADR 2,900 80,982
Macronix International Co., Ltd. ADR 46,000 1,405,875
Taiwan Semiconductor Manufacturing
Co., Ltd.(DAGGER) 312,310 2,009,338
Taiwan Semiconductor Manufacturing
Co., Ltd. ADR(DAGGER) 44,700 2,338,369
United Microelectronics Co., Ltd.(DAGGER) 731,350 2,472,103
-----------
8,306,667
-----------
TOTAL TAIWAN 8,729,067
-----------
THAILAND (0.5%)
WIRELESS TELECOMMUNICATION SERVICES (0.5%)
Advanced Information Service Public Co., Ltd. 38,391 449,597
-----------
TOTAL THAILAND 449,597
-----------
TURKEY (6.4%)
BANKS (3.5%)
Dogan Yayin Holding AS 46,402,494 1,120,575
Yapi Ve Kredi Bankasi AS 63,776,184 2,036,108
-----------
3,156,683
-----------
DIVERSIFIED FINANCIALS (2.3%)
Koc Holding AS 4,120,083 826,323
Turkiye Is Bankasi AS Class C 23,070,000 1,265,319
-----------
2,091,642
-----------
FOOD & DRUG RETAILING (0.6%)
Migros Turkey TAS 797,940 542,158
-----------
TOTAL TURKEY 5,790,483
-----------
TOTAL COMMON STOCKS (Cost $63,780,589) 69,571,816
-----------
See Accompanying Notes to Financial Statements.
21
<PAGE>
WARBURG PINCUS EMERGING MARKETS FUND
SCHEDULE OF INVESTMENTS (CONT'D)--APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
------- -----
PREFERRED STOCKS (5.9%)
BRAZIL (4.8%)
BANKS (0.7%)
Banco Itau SA 8,677,286 $ 649,191
-----------
OIL & GAS (2.6%)
Petroleo Brasileiro SA 10,133,220 2,415,305
-----------
METALS & MINING (1.5%)
Companhia Vale do Rio Doce Class A 53,484 1,324,910
-----------
TOTAL BRAZIL 4,389,406
-----------
TAIWAN (0.1%)
BANKS (0.1%)
Taishin International Bank(DAGGER) 306,735 98,173
-----------
TOTAL TAIWAN 98,173
-----------
THAILAND (1.0%)
BANKS (1.0%)
Siam Commercial Bank Public Co., Ltd.(DAGGER) 1,077,012 862,541
-----------
TOTAL THAILAND 862,541
-----------
TOTAL PREFERRED STOCKS (Cost $4,472,828) 5,350,120
-----------
RIGHTS (0.0%)
THAILAND (0.0%)
DIVERSIFIED TELECOMMUNICATION SERVICES (0.0%)
Telecomasia Corp. Public Co., Ltd.(DAGGER) 191,873 0
-----------
TOTAL THAILAND 0
-----------
TOTAL RIGHTS (Cost $0) 0
-----------
SHORT-TERM INVESTMENTS (8.7%)
Institutional Money Market Trust 3,594,871 3,594,871
RBB Select Sweep 4,266,569 4,266,569
-----------
TOTAL SHORT-TERM INVESTMENTS (Cost $7,861,440) 7,861,440
-----------
TOTAL INVESTMENTS AT VALUE (91.5%) (Cost $76,114,857*) 82,783,376
OTHER ASSETS IN EXCESS OF LIABILITIES (8.5%) 7,734,907
-----------
NET ASSETS (100.0%) $90,518,283
===========
INVESTMENT ABBREVIATIONS
ADR = American Depository Receipt
GDR = Global Depository Receipt
--------------------------------------------------------------------------------
(DAGGER) Non-income producing security.
* Cost for federal income tax purposes is $76,132,456.
# Restricted security.
See Accompanying Notes to Financial Statements.
22
<PAGE>
WARBURG PINCUS GLOBAL POST-VENTURE CAPITAL FUND
SCHEDULE OF INVESTMENTS--APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
------- -----
COMMON STOCKS (91.4%)
AUSTRALIA (0.1%)
MEDIA (0.1%)
BMCmedia.com, Ltd.(DAGGER) 189,400 $ 223,244
------------
TOTAL AUSTRALIA 223,244
------------
BRAZIL (0.6%)
WIRELESS TELECOMMUNICATION SERVICES (0.6%)
Celular Crt Participacoes SA(DAGGER) 2,420,000 911,968
------------
TOTAL BRAZIL 911,968
------------
CANADA (4.4%)
DIVERSIFIED TELECOMMUNICATION SERVICES (1.0%)
Cyberplex, Inc.(DAGGER) 98,100 1,122,251
OCI Communications, Inc.(DAGGER) 46,600 506,364
------------
1,628,615
------------
FINANCIAL SERVICES (0.3%)
Versus Technologies, Inc.(DAGGER) 73,878 483,658
------------
INTERNET & CATALOG RETAIL (0.1%)
Chapters Online, Inc.(DAGGER) 33,700 109,175
------------
INTERNET SOFTWARE & SERVICES (0.5%)
BCE Emergis, Inc.(DAGGER) 17,460 844,919
------------
MEDIA (1.7%)
Rogers Communications Inc., Class B(DAGGER) 36,300 944,458
Shaw Communications, Inc. Class B(DAGGER) 77,900 1,845,256
------------
2,789,714
------------
SOFTWARE (0.8%)
Descartes Systems Group, Inc.(DAGGER) 35,600 1,224,181
------------
TOTAL CANADA 7,080,262
------------
DENMARK (0.4%)
BIOTECHNOLOGY (0.2%)
Bavarian Nordic Research Institute AS(DAGGER) 9,999 293,325
------------
SOFTWARE (0.2%)
Navision Software AS(DAGGER) 4,840 354,958
------------
TOTAL DENMARK 648,283
------------
FINLAND (2.5%)
COMMUNICATIONS EQUIPMENT (1.2%)
Eimo Oyj 67,200 612,362
Nokia Oyj(DAGGER) 23,200 1,334,002
------------
1,946,364
------------
INTERNET SOFTWARE & SERVICES (0.3%)
Satama Interactive Oyj(DAGGER) 35,500 416,985
------------
See Accompanying Notes to Financial Statements.
23
<PAGE>
WARBURG PINCUS GLOBAL POST-VENTURE CAPITAL FUND
SCHEDULE OF INVESTMENTS (CONT'D)--APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
------- -----
COMMON STOCKS (CONT'D)
FINLAND (cont'd)
IT CONSULTING & SERVICES (0.3%)
Stonesoft Oyj(DAGGER) 29,600 $ 552,948
------------
SOFTWARE (0.8%)
Comptel Oyj(DAGGER) 54,150 1,226,701
------------
TOTAL FINLAND 4,142,998
------------
FRANCE (1.1%)
COMMERCIAL SERVICES & SUPPLIES (1.0%)
Consodata SA(DAGGER) 28,800 1,650,753
------------
IT CONSULTING & SERVICES (0.1%)
FI System(DAGGER) 3,800 211,575
------------
TOTAL FRANCE 1,862,328
------------
GERMANY (4.5%)
DIVERSIFIED TELECOMMUNICATIONS SERVICES (1.0%)
Telegate AG(DAGGER) 13,300 1,684,634
------------
INTERNET & CATALOG RETAIL (0.4%)
DCI Database for Commerce and Industry AG(DAGGER) 12,000 721,712
------------
INTERNET SOFTWARE & SERVICES (0.8%)
Articon Information Systems AG(DAGGER) 13,266 1,003,361
Biodata Information Technology AG(DAGGER) 1,000 287,045
------------
1,290,406
------------
IT CONSULTING & SERVICES (0.2%)
Intershop Communications AG(DAGGER) 810 363,153
------------
MACHINERY (1.2%)
Jenoptik AG 70,000 2,015,692
------------
SOFTWARE (0.7%)
IXOS Software AG(DAGGER) 11,100 242,758
Openshop Holding AG(DAGGER) 5,000 291,601
Telesens AG(DAGGER) 15,000 628,765
------------
1,163,124
------------
TOTAL GERMANY 7,238,721
------------
INDIA (0.8%)
SOFTWARE (0.8%)
Aptech, Ltd. 16,200 675,369
Silverline Technologies, Ltd. 67,500 653,027
------------
1,328,396
------------
TOTAL INDIA 1,328,396
------------
IRELAND (0.5%)
COMMERCIAL SERVICES & SUPPLIES (0.5%)
Icon PLC(DAGGER) 62,197 872,829
------------
TOTAL IRELAND 872,829
------------
See Accompanying Notes to Financial Statements.
24
<PAGE>
WARBURG PINCUS GLOBAL POST-VENTURE CAPITAL FUND
SCHEDULE OF INVESTMENTS (CONT'D)--APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
------- -----
COMMON STOCKS (CONT'D)
ISRAEL (3.7%)
COMMUNICATIONS EQUIPMENT (1.6%)
Audiocodes, Ltd. DAGGER) 8,500 $ 637,500
Gilat Satellite Networks(DAGGER) 22,300 1,915,013
------------
2,552,513
------------
DIVERSIFIED TELECOMMUNICATION SERVICES (1.3%)
Amdocs, Ltd. (USA)(DAGGER) 30,560 2,068,530
------------
INTERNET SOFTWARE & SERVICES (0.8%)
BackWeb Technologies, Ltd.(DAGGER) 44,000 1,031,250
Internet Gold(DAGGER) 24,700 284,050
------------
1,315,300
------------
TOTAL ISRAEL 5,936,343
------------
ITALY (1.4%)
DIVERSIFIED FINANCIALS (0.3%)
Locazione Attrezzature SpA 510,100 422,995
------------
INSURANCE (0.6%)
Bayerische Vita SpA 132,300 958,442
------------
INTERNET & CATALOG RETAIL (0.5%)
Freedomland Internet Television Network SpA(DAGGER) 10,300 843,793
------------
TOTAL ITALY 2,225,230
------------
JAPAN (2.8%)
DIVERSIFIED FINANCIALS (0.7%)
Shinko Securities Co., Ltd. 258,000 1,129,196
------------
ELECTRICAL EQUIPMENT (0.1%)
Densei-Lambda K K. 5,100 96,741
------------
INTERNET SOFTWARE & SERVICES (0.6%)
Internet Intitiative Japan, Inc. ADR(DAGGER) 11,200 672,000
Softbank Corp. 500 123,067
Softbank Corp. New(DAGGER) 1,000 247,059
------------
1,042,126
------------
SOFTWARE (0.5%)
Intec, Inc. 18,000 469,689
Capcom Co., Ltd. 7,800 288,698
------------
Total Software 758,387
------------
TEXTILES & APPAREL (0.5%)
Sazaby, Inc. 16,000 836,483
------------
TRADING COMPANIES & DISTRIBUTORS (0.4%)
Misumi Corp. 7,480 728,817
------------
TOTAL JAPAN 4,591,750
------------
See Accompanying Notes to Financial Statements.
25
<PAGE>
WARBURG PINCUS GLOBAL POST-VENTURE CAPITAL FUND
SCHEDULE OF INVESTMENTS (CONT'D)--APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
------- -----
COMMON STOCKS (CONT'D)
LUXEMBOURG (0.5%)
INTERNET SOFTWARE & SERVICES (0.5%)
Thiel Logistik AG(DAGGER) 13,500 $ 842,681
------------
TOTAL LUXEMBOURG 842,681
------------
MEXICO (0.2%)
WIRELESS TELECOMMUNICATION SERVICES (0.2%)
Nuevo Grupo Iusacell SA ADR, Series V(DAGGER) 23,300 371,344
------------
TOTAL MEXICO 371,344
------------
NETHERLANDS (1.7%)
CONTAINERS & PACKAGING (0.5%)
Ifco Systems NV(DAGGER) 34,100 829,669
------------
DIVERSIFIED FINANCIALS (0.3%)
Ordina NV(DAGGER) 13,900 506,657
------------
DIVERSIFIED TELECOMMUNICATION SERVICES (0.1%)
Versatel Telecom International NV(DAGGER) 5,400 217,006
------------
IT CONSULTING & SERVICES (0.0%)
Pinkroccade NV(DAGGER) 880 55,331
------------
OIL & GAS (0.5%)
Petroplus International NV 75,740 793,711
------------
SOFTWARE (0.3%)
Seagull Holding NV(DAGGER) 17,700 396,778
------------
TOTAL NETHERLANDS 2,799,152
------------
NORWAY (0.9%)
ENERGY EQUIPMENT & SERVICES (0.4%)
Petroleum Geo - Services ADR(DAGGER) 41,300 671,125
------------
INTERNET SOFTWARE & SERVICES (0.3%)
Stepstone ASA(DAGGER) 125,000 419,146
------------
OIL & GAS (0.2%)
Navis ASA(DAGGER) 394,000 396,344
------------
TOTAL NORWAY 1,486,615
------------
SINGAPORE (0.9%)
COMPUTERS & PERIPHERALS (0.5%)
Datapulse Technology, Ltd. 718,000 256,513
Natsteel Electronics Co. 105,000 602,657
------------
859,170
------------
ELECTRONIC EQUIPMENT & INSTRUMENTS (0.4%)
Venture Manufacturing, Ltd. 57,000 667,666
------------
TOTAL SINGAPORE 1,526,836
------------
See Accompanying Notes to Financial Statements.
26
<PAGE>
WARBURG PINCUS GLOBAL POST-VENTURE CAPITAL FUND
SCHEDULE OF INVESTMENTS (CONT'D)--APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
------- -----
COMMON STOCKS (CONT'D)
SOUTH KOREA (0.4%)
INTERNET SOFTWARE & SERVICES (0.1%)
Daum Communications Corporation(DAGGER) 3,800 $ 179,776
------------
MEDIA (0.2%)
Cheil Communications, Inc.(DAGGER) 2,500 262,455
------------
WIRELESS TELECOMMUNICATION SERVICES (0.2%)
Hansol PCS(DAGGER) 12,400 247,505
------------
TOTAL SOUTH KOREA 689,736
------------
SPAIN (3.3%)
DIVERSIFIED FINANICALS (0.5%)
Dinamia Capital Privado. Sociedad de Capital
Riesgo, SA(DAGGER) 61,600 752,185
------------
HOTELS RESTAURANTS & LEISURE (0.9%)
NH Hoteles SA 125,500 1,412,374
------------
IT CONSULTING & SERVICES (1.1%)
Indra Sistemas SA 77,700 1,828,877
------------
REAL ESTATE (0.4%)
Prima Inmobiliaria SA(DAGGER) 88,100 718,518
------------
ROAD & RAIL (0.4%)
Transportes Azkar SA(DAGGER) 46,200 631,498
------------
TOTAL SPAIN 5,343,452
------------
SWEDEN (1.2%)
BIOTECHNOLOGY (0.2%)
Oxigene, Inc.(DAGGER) 19,200 257,352
------------
ELECTRONIC EQUIPMENT & INSTRUMENTS (0.2%)
Micronic Laser System AB(DAGGER) 16,500 336,351
------------
INTERNET SOFTWARE & SERVICES (0.1%)
Cell Network AB(DAGGER) 10,700 200,788
------------
IT CONSULTING & SERVICES (0.3%)
Industrial & Financial Systems Ifs AB(DAGGER) 19,366 365,571
Protect Data AB 7,800 92,788
------------
458,359
------------
REAL ESTATE (0.4%)
Kungsleden AB(DAGGER) 86,200 693,243
------------
TOTAL SWEDEN 1,946,093
------------
SWITZERLAND (1.4%)
LEISURE EQUIPMENT & PRODUCTS (1.2%)
Gretag Imaging Group(DAGGER) 9,700 1,953,554
------------
MACHINERY (0.2%)
Mikron Holding AG 350 253,272
------------
TOTAL SWITZERLAND 2,206,826
------------
See Accompanying Notes to Financial Statements.
27
<PAGE>
WARBURG PINCUS GLOBAL POST-VENTURE CAPITAL FUND
SCHEDULE OF INVESTMENTS (CONT'D)--APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
------- -----
COMMON STOCKS (CONT'D)
UNITED KINGDOM (5.0%)
BIOTECHNOLOGY (0.3%)
Oxford Glycosciences PLC(DAGGER) 22,166 $ 559,301
------------
COMMUNICATIONS EQUIPMENT (0.4%)
Filtronic Comtek PLC 20,800 567,960
------------
DIVERSIFIED FINANCIALS (1.4%)
3i Group PLC 47,100 950,020
Amvescap PLC ADR(DAGGER) 18,560 1,327,040
------------
2,277,060
------------
HOTELS RESTAURANTS & LEISURE (0.1%)
Holmes Place PLC 49,800 195,987
------------
HOUSEHOLD DURABLES (0.2%)
Mentmore Abbey PLC 100,000 277,752
------------
INTERNET & CATALOG RETAIL (0.1%)
Ebookers.com PLC ADR(DAGGER) 13,000 237,250
------------
IT CONSULTING & SERVICES (0.3%)
Itnet PLC(DAGGER) 39,500 471,298
------------
MEDIA (1.1%)
EMAP PLC 28,300 548,677
Eyretel PLC(DAGGER) 502,200 1,190,551
------------
1,739,228
------------
SOFTWARE (1.1%)
Autonomy Corp. PLC(DAGGER) 7,350 977,550
Diagonal PLC 53,000 462,359
Sage Group PLC 28,300 314,858
------------
1,754,767
------------
TOTAL UNITED KINGDOM 8,080,603
------------
UNITED STATES (53.1%)
BANKS & SAVINGS & LOANS (1.1%)
Mellon Financial Corp. 55,200 1,773,300
------------
BUSINESS SERVICES (5.6%)
ACNielsen Corp.(DAGGER) 10,200 235,237
Acxiom Corp.(DAGGER) 38,000 1,026,000
AsiaInfo Holdings, Inc.(DAGGER) 6,900 300,150
BISYS Group, Inc.(DAGGER) 18,400 1,151,150
DoubleClick, Inc.(DAGGER) 15,600 1,183,650
Harte-Hanks Communications, Inc. 69,300 1,715,175
Mobius Management Systems, Inc.(DAGGER) 2,601 16,419
New York Restaurant Group, Inc. #(DAGGER) 77,720 749,998
On Assignment, Inc.(DAGGER) 1,700 53,337
QRS Corp.(DAGGER) 8,300 273,900
Startek, Inc.(DAGGER) 1,800 92,475
See Accompanying Notes to Financial Statements.
28
<PAGE>
WARBURG PINCUS GLOBAL POST-VENTURE CAPITAL FUND
SCHEDULE OF INVESTMENTS (CONT'D)--APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
------- -----
COMMON STOCKS (CONT'D)
UNITED STATES (CONT'D)
BUSINESS SERVICES (cont'd)
TMP Worldwide, Inc.(DAGGER) 23,400 $ 1,529,775
Young & Rubicam, Inc.(DAGGER) 15,000 835,312
------------
9,162,578
------------
COMMUNICATIONS & MEDIA (7.4%)
Alteon Websystems, Inc(DAGGER) 3,769 256,292
America Online, Inc.(DAGGER) 300 17,944
AMFM, Inc.(DAGGER) 15,500 1,028,812
At Home Corp. Series A(DAGGER) 50,700 944,287
Cablevision Systems Corp.(DAGGER) 20,600 1,394,362
CMGI, Inc.(DAGGER) 14,600 1,040,250
Hispanic Broadcasting Corp.(DAGGER) 10,600 1,071,262
Journal Register Co.(DAGGER) 14,500 212,062
MaMaMedia, Inc.(DAGGER) 92,592 499,997
Netcentives, Inc.(DAGGER) 1,560 15,892
Radio Unica Communications(DAGGER) 24,100 231,962
USA Networks, Inc.(DAGGER) 73,400 1,688,200
Westwood One, Inc.(DAGGER) 32,900 1,163,837
Women.com Networks, Inc. #(DAGGER) 243,639 1,218,195
Yahoo!, Inc.(DAGGER) 10,238 1,333,499
------------
12,116,853
------------
COMPUTERS (7.9%)
Brocade Communications Systems, Inc.(DAGGER) 4,000 496,000
Citrix Systems, Inc.(DAGGER) 40,600 2,479,137
Concord Communications, Inc.(DAGGER) 2,080 58,240
Documentum, Inc. DAGGER) 20,900 1,233,100
Excalibur Technologies Corp.(DAGGER) 36,400 1,292,200
Intuit, Inc.(DAGGER) 40,400 1,451,875
Mission Critical Software, Inc.(DAGGER) 2,321 83,556
Network Appliance, Inc.(DAGGER) 8,660 640,299
PeopleSoft, Inc. DAGGER) 40,100 558,894
Sun Microsystems, Inc.(DAGGER) 20,900 1,921,494
Tecnomatix Technologies, Ltd.(DAGGER) 37,500 1,279,688
Verisign, Inc.(DAGGER) 8,700 1,212,562
Veritas Software Corp.(DAGGER) 1,650 176,988
VIA NET.WORKS, Inc.(DAGGER) 1,450 28,909
------------
12,912,942
------------
CONSUMER NON-DURABLES (0.0%)
Dial Corp. 2,700 37,631
------------
CONSUMER SERVICES (0.1%)
DeVry, Inc.(DAGGER) 8,600 204,787
------------
See Accompanying Notes to Financial Statements.
29
<PAGE>
WARBURG PINCUS GLOBAL POST-VENTURE CAPITAL FUND
SCHEDULE OF INVESTMENTS (CONT'D)--APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
------- -----
COMMON STOCKS (CONT'D)
UNITED STATES (CONT'D)
ELECTRONICS (10.9%)
Altera Corp.(DAGGER) 14,700 $ 1,503,075
DSP Group, Inc.(DAGGER) 20,200 1,436,725
Flextronics International, Ltd.(DAGGER) 40,700 2,859,175
JDS Uniphase Corp.(DAGGER) 23,200 2,407,000
KLA-Tencor Corp. DAGGER) 13,800 1,033,275
Maxim Integrated Products, Inc.(DAGGER) 52,540 3,405,249
Solectron Corp.(DAGGER) 15,200 711,550
Synopsys, Inc.(DAGGER) 1,000 42,000
Vitesse Semiconductor Corp.(DAGGER) 17,600 1,197,900
Xilinx, Inc.(DAGGER) 42,000 3,076,500
------------
17,672,449
------------
ENERGY (1.3%)
Chaparral Resources, Inc.(DAGGER) 5,555 43,750
Newfield Exploration Co.(DAGGER) 52,900 2,149,062
------------
2,192,812
------------
FINANCIAL SERVICES (1.4%)
Ambac Financial Group, Inc. 5,800 278,400
Gabelli Asset Management, Inc. Class A(DAGGER) 49,400 981,825
MBIA, Inc. 3,300 163,144
T. Rowe Price Associates, Inc. 20,300 773,937
------------
2,197,306
------------
FOOD, BEVERAGES & TOBACCO (0.0%)
Ben & Jerry's Homemade, Inc. Class A(DAGGER) 700 30,319
------------
HEALTHCARE (1.3%)
Affymetrix, Inc. (DAGGER) 1,400 189,087
Alterra Healthcare Corp.(DAGGER) 700 2,275
Amgen, Inc.(DAGGER) 19,400 1,086,400
Guidant Corp.(DAGGER) 13,700 786,037
MedicaLogic, Inc.(DAGGER) 300 3,488
Oxford Health Plans, Inc.(DAGGER) 3,400 64,600
------------
2,131,887
------------
LEISURE & ENTERTAINMENT (0.5%)
Premier Parks, Inc.(DAGGER) 40,935 882,661
------------
OIL SERVICES (1.9%)
Cooper Cameron Corp.(DAGGER) 24,800 1,860,000
Nabors Industries, Inc.(DAGGER) 30,400 1,198,900
------------
3,058,900
------------
See Accompanying Notes to Financial Statements.
30
<PAGE>
WARBURG PINCUS GLOBAL POST-VENTURE CAPITAL FUND
SCHEDULE OF INVESTMENTS (CONT'D)--APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
------- -----
COMMON STOCKS (CONT'D)
UNITED STATES (CONT'D)
PHARMACEUTICALS (2.5%)
IVAX Corp.(DAGGER) 54,600 $ 1,494,675
Medimmune, Inc.(DAGGER) 10,900 1,743,319
Watson Pharmaceuticals, Inc.(DAGGER) 17,100 768,431
------------
4,006,425
------------
PUBLISHING (1.1%)
Central Newspapers, Inc. Class A 30,000 920,625
Scholastic Corp. (DAGGER) 19,300 901,069
------------
1,821,694
------------
RETAIL (1.5%)
Amazon.com, Inc. (DAGGER) 15,100 833,331
Bed, Bath & Beyond, Inc.(DAGGER) 1,600 58,700
Tiffany & Co. 22,200 1,613,663
------------
2,505,694
------------
TELECOMMUNICATIONS & EQUIPMENT (6.5%)
ANTEC Corp.(DAGGER) 3,800 204,250
Cabletron Systems, Inc.(DAGGER) 25,200 576,450
CIENA Corp.(DAGGER) 18,135 2,241,939
Cisco Systems, Inc.(DAGGER) 47,880 3,319,431
Com21, Inc.(DAGGER) 961 26,908
Covad Communications Group, Inc.(DAGGER) 18,900 524,475
Exodus Communications, Inc.(DAGGER) 19,600 1,733,375
Pinnacle Holdings, Inc.(DAGGER) 31,780 1,785,639
TTI Team Telecom International, Ltd.(DAGGER) 5,500 147,813
------------
10,560,280
------------
LIMITED PARTNERSHIPS (1.9%)
Boston Ventures V L.P. 880,586 880,586
New Enterprise Associates VII L.P. 2,228,118 2,228,118
------------
3,108,704
------------
TOTAL UNITED STATES 86,377,222
------------
TOTAL COMMON STOCKS (Cost $113,105,095) 148,732,912
------------
WARRANTS (0.4%)
CANADA (0.4%)
DIVERSIFIED TELECOMMUNICATION SERIES (0.3%)
OCI Communications,Inc.(DAGGER) 44,000 478,112
------------
INTERNET SOFTWARE & SERVICES (0.1%)
Wysdom Private Placement(DAGGER) 20,000 228,000
------------
TOTAL CANADA 706,112
------------
TOTAL WARRANTS (Cost $771,307) 706,112
------------
See Accompanying Notes to Financial Statements.
31
<PAGE>
WARBURG PINCUS GLOBAL POST-VENTURE CAPITAL FUND
SCHEDULE OF INVESTMENTS (CONT'D)--APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
------- -----
SHORT TERM INVESTMENTS (8.3%)
Institutional Money Market Trust 5,830,195 $ 5,830,196
RBB Money Market Fund 7,622,091 7,622,091
------------
TOTAL SHORT TERM INVESTMENTS (Cost $13,452,287) 13,452,287
------------
PAR
--------
U.S. TREASURY OBLIGATIONS (0.5%)
U.S. Treasury Bill
5.780% 01/04/01 $529,000 507,608
U.S. Treasury Note
5.875% 11/30/01 260,000 256,889
------------
TOTAL U.S. TREASURY OBLIGATIONS (Cost $767,249) 764,497
------------
TOTAL INVESTMENTS AT VALUE (104.6%) (Cost $128,095,938*) 163,655,808
LIABILITIES IN EXCESS OF OTHER ASSETS (-4.6%) (1,006,752)
------------
NET ASSETS (100.0%) $162,649,056
============
INVESTMENT ABBREVIATIONS
ADR = American Depository Receipt
--------------------------------------------------------------------------------
# Private Security.
(DAGGER) Non-income producing security.
* Cost for federal income tax purposes is $128,173,691.
See Accompanying Notes to Financial Statements.
32
<PAGE>
WARBURG PINCUS INTERNATIONAL EQUITY FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERNATIONAL EMERGING GLOBAL POST-VENTURE
EQUITY MARKETS CAPITAL
-------------- --------------- ------------
<S> <C> <C> <C>
ASSETS
Investments, at value (Cost - $1,002,904,347,
$122,221,736 and $128,095,038, respectively) $1,190,843,169 $82,783,376 $163,655,808
Foreign currency (Cost - $23,857,743, $6,745,871
and $140,496, respectively) 23,836,351 6,743,711 135,187
Cash 0 2,252 0
Receivable for investments sold 19,125,310 1,473,362 24,612
Receivable for Fund shares sold 9,373,502 1,155,964 1,599,720
Dividends, interest and reclaim receivable 3,439,179 203,541 103,598
Receivable from investment adviser 0 829 0
Prepaid expenses and other assets 81,773 72,324 52,379
-------------- ----------- ------------
Total Assets 1,246,699,284 92,435,359 165,571,304
-------------- ----------- ------------
LIABILITIES
Advisory fee payable 1,034,296 23,434 132,459
Administrative services fee payable 103,430 3,528 13,332
Payable for investments purchased 1,416,946 438,994 2,653,451
Accrued expenses payable 1,292,563 87,202 121,382
Payable for Fund shares redeemed 0 0 1,624
Deferred capital gains taxes 0 1,356,275 0
Other liabilities 101,042 7,643 0
-------------- ----------- ------------
Total Liabilities 3,948,277 1,917,076 2,922,248
-------------- ----------- ------------
NET ASSETS
Capital stock, $0.001 par value 814,845 120,126 165,663
Paid-in capital 814,030,204 120,006,279 165,497,308
Accumulated net realized gain (loss) from security
transactions and foreign currency related itemsV 240,246,802 (33,772,660) 5,932,860
Net unrealized appreciation (depreciation) from
investments and foreign currency related items 187,659,156 4,164,538 (8,946,775)
-------------- ----------- ------------
Net Assets $1,242,751,007 $90,518,283 $162,649,056
============== =========== ============
COMMON SHARES
Net assets $ 998,020,288 $85,540,044 $156,372,471
-------------- ----------- ------------
Shares outstanding 40,668,979 7,541,811 5,226,666
-------------- ----------- ------------
Net asset value, offering price and redemption price
per share $ 24.54 $ 11.34 $ 29.92
============== =========== ============
ADVISOR SHARES
Net assets $ 244,730,719 $ 85,898 $ 6,276,585
-------------- ----------- ------------
Shares outstanding 10,105,327 7,780 211,910
-------------- ----------- ------------
Net asset value, offering price and redemption price
per share $ 24.22 $ 11.04 $ 29.62
============== =========== ============
INSTITUTIONAL SHARES
Net assets $ $ 4,892,341 $
-------------- ----------- ------------
Shares outstanding 430,958
-------------- ----------- ------------
Net asset value, offering price and redemption price
per share $ $ 11.35 $
============== =========== ============
</TABLE>
See Accompanying Notes to Financial Statements.
33
<PAGE>
WARBURG PINCUS INTERNATIONAL EQUITY FUNDS
STATEMENTS OF OPERATIONS
For the Six Months Ended April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERNATIONAL EMERGING GLOBAL POST-VENTURE
EQUITY MARKETS CAPITAL
------------- ----------- -------------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividends $ 5,825,926 $ 908,378 $ 160,065
Interest 1,317,524 138,881 303,716
Foriegn Taxes Withheld (732,471) (75,176) (20,767)
------------ ----------- ------------
Total investment income 6,410,979 972,083 443,014
------------ ----------- ------------
EXPENSES:
Investment advisory fees 6,739,544 629,283 489,330
Administrative services fees 673,954 38,323 39,146
Shareholder servicing/distribution fees 664,903 122,934 100,929
Administration and accounting fees 531,713 67,476 50,856
Transfer agent fees 485,592 64,121 20,530
Custodian/Sub-custodian fees 423,821 67,224 20,259
Interest expense 321,623 67,366 166
Printing fees 98,458 25,542 5,995
Legal fees 48,512 12,789 6,725
Registration fees 42,540 30,294 17,047
Audit fees 30,334 5,850 5,808
Insurance expense 4,673 374 130
Directors fees 3,175 5,765 6,370
Offering/Organizational costs 0 1,986 496
Miscellaneous expense 15,704 371 3,436
------------ ----------- ------------
10,084,546 1,139,698 767,223
Less: fees waived and transfer agent offsets 0 (312,571) (118,245)
------------ ----------- ------------
Total expenses 10,084,546 827,127 648,978
------------ ----------- ------------
Net investment income (loss) (3,673,567) 144,956 (205,964)
------------ ----------- ------------
NET REALIZED AND UNREALIZED LOSS FROM INVESTMENTS
AND FOREIGN CURRENCY RELATED ITEMS:
Net realized gain from security and other
related transactions 262,674,806 25,604,602 6,015,795
Net realized loss from foreign currency related items (776,665) (285,636) (18,321)
Net change in unrealized appreciation (depreciation)
from investments (69,156,087) (4,064,928) (10,284,613)
Net change in unrealized appreciation (depreciation)
from foreign currency related items (127,560) (2,412,895) 14,966
------------ ----------- ------------
Net realized and unrealized gain (loss) from investments
and foreign currency related items 192,614,494 18,841,143 (4,272,173)
------------ ----------- ------------
Net increase (decrease) in net assets resulting from operations $188,940,927 $18,986,099 $ (4,478,137)
============ =========== ============
</TABLE>
See Accompanying Notes to Financial Statements.
34 & 35
<PAGE>
WARBURG PINCUS INTERNATIONAL EQUITY FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY
------------------------------------
FOR THE
SIX MONTHS
ENDED FOR THE
APRIL 30, 2000 YEAR ENDED
(UNAUDITED) OCTOBER 31, 1999
--------------- ----------------
<S> <C> <C>
FROM OPERATIONS:
Net investment income (loss) $ (3,673,567) $ 6,265,096
Net realized gain from security and other
related transactions 262,674,806 171,063,104
Net realized loss from foreign currency related items (776,665) (29,566,242)
Net change in unrealized appreciation (depreciation) from investments (69,156,087) 186,197,744
Net change in unrealized appreciation (depreciation) from
foreign currency related items (127,560) 19,270,224
--------------- ---------------
Net increase in net assets resulting from operations 188,940,927 353,229,926
--------------- ---------------
FROM DIVIDENDS:
Dividends from net investment income
Common Class shares (6,691,375) 0
Advisor Class shares (449,429) 0
--------------- ---------------
Net decrease in net assets from dividends (7,140,804) 0
--------------- ---------------
FROM CAPITAL SHARE TRANSACTIONS:
Proceeds from sale of shares 2,031,260,777 1,825,106,334
Reinvestment of dividends and distributions 6,699,235 0
Net asset value of shares redeemed (2,179,529,650) (2,559,755,180)
--------------- ---------------
Net decrease in net assets from capital
share transactions (141,569,638) (734,648,846)
--------------- ---------------
Net increase (decrease) in net assets 40,230,485 (381,418,920)
NET ASSETS:
Beginning of period 1,202,520,522 1,583,939,442
--------------- ---------------
End of period $ 1,242,751,007 $ 1,202,520,522
=============== ===============
UNDISTRIBUTED NET INVESTMENT INCOME: $ 0 $ 5,901,701
=============== ===============
</TABLE>
See Accompanying Notes to Financial Statements.
36
<PAGE>
WARBURG PINCUS INTERNATIONAL EQUITY FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (CONT'D)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
EMERGING MARKETS GLOBAL POST-VENTURE CAPITAL
---------------------------------- ---------------------------------
FOR THE FOR THE
SIX MONTHS SIX MONTHS
ENDED FOR THE ENDED FOR THE
APRIL 30, 2000 YEAR ENDED APRIL 30, 2000 YEAR ENDED
(UNAUDITED) OCTOBER 31, 1999 (UNAUDITED) OCTOBER 31, 1999
-------------- ----------------- -------------- ----------------
<S> <C> <C> <C> <C>
FROM OPERATIONS:
Net investment income (loss) $ 144,956 $ 361,573 $ (205,964) $ (33,163)
Net realized gain from security and
other related transactions (net of
capital gains taxes of $940,534 for
Emerging Markets) 25,604,602 3,365,256 6,015,795 1,895,467
Net realized loss from foreign
currency related items (285,636) (759,014) (18,321) (14,579)
Net change in unrealized appreciation
(depreciation) from investments (4,064,928) 20,175,686 (10,284,613) 1,068,709
Net change in unrealized
appreciation (depreciation) from foreign
currency related items (net of
estimated deferred capital gains taxes
of $1,134,403 for Emerging Markets) (2,412,895) (86,198) 14,966 (135)
------------- ------------- ------------ -----------
Net increase (decrease) in net assets
resulting from operations 18,986,099 23,057,303 (4,478,137) 2,916,299
------------- ------------- ------------ -----------
FROM DISTRIBUTIONS:
Distributions from net realized gains
Common Class shares 0 0 (1,914,397) (11,449)
Advisor Class shares 0 0 (15,707) (4)
------------- ------------- ------------ -----------
Net decrease in net assets from
distributions 0 0 (1,930,104) (11,453)
------------- ------------- ------------ -----------
FROM CAPITAL SHARE TRANSACTIONS:
Proceeds from sale of shares 215,610,179 164,611,366 233,657,516 4,476,418
Reinvestment of dividends and distributions 0 0 1,656,495 11,073
Net asset value of shares redeemed (211,902,722) (180,058,486) (73,573,182) (3,738,167)
------------- ------------- ------------ -----------
Net increase (decrease) in net assets
from capital share transactions 3,707,457 (15,447,120) 161,740,829 749,324
------------- ------------- ------------ -----------
Net increase in net assets 22,693,556 7,610,183 155,332,588 3,654,170
NET ASSETS:
Beginning of period 67,824,727 60,214,544 7,316,468 3,662,297
------------- ------------- ------------ -----------
End of period $ 90,518,283 $ 67,824,727 $162,649,056 $ 7,316,467
============= ============= ============ ===========
UNDISTRIBUTED NET INVESTMENT INCOME: $ 0 $ 0 $ 0 $ 0
============= ============= ============ ===========
</TABLE>
See Accompanying Notes to Financial Statements.
37
<PAGE>
WARBURG PINCUS INTERNATIONAL EQUITY FUND
FINANCIAL HIGHLIGHTS
(For an Advisor 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 $ 21.54 $ 16.47 $ 20.54 $ 20.50 $ 19.16 $ 20.38
-------- -------- -------- -------- -------- --------
INVESTMENT ACTIVITIES:
Net investment income (loss) (0.13) 0.03 0.04(a) 0.04 0.18 0.03
Net gains (losses) on
investments and foreign
currency related items
(both realized and unrealized) 2.85 5.04 (1.36) 0.78 1.68 (0.67)
-------- -------- -------- -------- -------- --------
Total from investment
activities 2.72 5.07 (1.32) 0.82 1.86 (0.64)
-------- -------- -------- -------- -------- --------
LESS DIVIDENDS AND DISTRIBUTIONS:
Dividends from net
investment income (0.04) 0.00 (0.03) (0.04) (0.52) (0.05)
Distributions from net
realized gains 0.00 0.00 (2.72) (0.74) 0.00 (0.53)
-------- -------- -------- -------- -------- --------
Total dividends and
distributions (0.04) 0.00 (2.75) (0.78) (0.52) (0.58)
-------- -------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 24.22 $ 21.54 $ 16.47 $ 20.54 $ 20.50 $ 19.16
======== ======== ======== ======== ======== ========
Total return 12.64%(DAGGER) 30.78% (6.49)% 4.04% 9.89% (3.04)%
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period
(000s omitted) $244,732 $231,990 $300,266 $500,473 $500,465 $317,736
Ratio of expenses to
average net assets 1.93%@ 1.94%@ 1.76%@ 1.76%@ 1.81%@ 1.89%
Ratio of net income to
average net assets (.94)%* .14% .21% .15% .18% .20%
Portfolio turnover rate 61.17% 116.35% 95.44% 61.80% 32.49% 32.24%
<FN>
--------------------------------------------------------------------------------
(a) Per share information is calculated using the average shares
outstanding method.
@ Interest earned on uninvested cash balances is used to offset portions
of the transfer agent expenses. These arrangements resulted in a
reduction to the Advisor Class shares' expenses by .03%, .01%, .00%,
.01% and .01% for the six months ended April 30, 2000, and for each of
the years ending October 31, 1999, 1998, 1997 and 1996, respectively.
The Advisor Class shares' operating expense ratios after reflecting
these arrangements were 1.90%, 1.93%, 1.76%, 1.75% and 1.80% for the
six months ended April 30, 2000, and for each of the years ended
October 31, 1999, 1998, 1997 and 1996, respectively.
(DAGGER) Non annualized.
* Annualized.
</FN>
</TABLE>
See Accompanying Notes to Financial Statements.
38
<PAGE>
WARBURG PINCUS EMERGING MARKETS FUND
FINANCIAL HIGHLIGHTS
(For an Advisor 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 $ 9.03 $ 6.44 $ 10.87 $ 12.21 $ 11.30 $10.00
------- ------- ------- ------- ------- ------
INVESTMENT ACTIVITIES:
Net investment income (loss) 0.13 0.04 0.21 0.00 (0.08) 0.14
Net gains (losses) on investments
and foreign currency related items
(both realized and unrealized) 1.88 2.55 (4.16) (1.33) 1.11 1.19
------- ------- ------- ------- ------- ------
Total from investment activities 2.01 2.59 (3.95) (1.33) 1.03 1.33
------- ------- ------- ------- ------- ------
LESS DIVIDENDS AND DISTRIBUTIONS:
Dividends from net investment income 0.00 0.00 (0.04) 0.00 (0.05) (0.03)
Distributions from net realized gains 0.00 0.00 (0.44) (0.01) (0.07) 0.00
------- ------- ------- ------- ------- ------
Total dividends and distributions 0.00 0.00 (0.48) (0.01) (0.12) (0.03)
------- ------- ------- ------- ------- ------
NET ASSET VALUE, END OF PERIOD $ 11.04 $ 9.03 $ 6.44 $ 10.87 $ 12.21 $11.30
======= ====== ======= ======= ======= ======
Total return 22.26%(DAGGER) 40.22% (37.71)% (10.94)% 9.20% 13.29%(DAGGER)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s omitted) $ 86 $ 42 $ 26 $ 266 $ 149 $ 1
Ratio of expenses to average
net assets 1.93%@ 1.91%@ 1.90%@ 1.90%@ 1.90%@ 1.22%*
Ratio of net income (loss) to average
net assets (1.91)%* .81% 1.01% (.09)% (.57)% 1.76%*
Decrease reflected in above
operating expense ratios due to
waivers/reimbursements .39%* .80% .94% .58% .65% 16.36%*
Portfolio turnover rate 117.51% 196.07% 125.59% 92.48% 61.84% 57.76%
<FN>
--------------------------------------------------------------------------------
** For the period December 30, 1994 (commencement of operations) through
October 31, 1995.
@ Interest earned on uninvested cash balances is used to offset portions
of the transfer agent expense. These arrangements resulted in a
reduction to the Advisor Class shares' expenses by .03%, .01%, .00%,
.00% and .00% for the six months ended April 30, 2000, and for each of
the years ended October 31, 1999, 1998, 1997 and 1996, respectively.
The Advisor Class shares' operating expense ratios after reflecting
these arrangements were 1.90% for the six months ended April 30, 2000,
and for each of the years ended October 31, 1999, 1998, 1997 and 1996,
respectively.
(DAGGER) Non annualized.
* Annualized.
</FN>
</TABLE>
See Accompanying Notes to Financial Statements.
39
<PAGE>
WARBURG PINCUS GLOBAL POST-VENTURE CAPITAL FUND
FINANCIAL HIGHLIGHTS
(For an Advisor 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**
-------------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
PER-SHARE DATA
Net asset value, beginning of period $19.09 $10.46 $11.11 $ 9.85 $10.00
------ ------ ------ ------ ------
INVESTMENT ACTIVITIES:
Net investment loss (0.04) (0.12)(a) (0.15) (0.15) 0.00
Net gains (losses) on investments and
foreign currency related items (both
realized and unrealized) 13.38 8.78 (0.11) 1.41 (0.15)
------ ------ ------ ------ ------
Total from investment activities 13.34 8.66 (0.26) 1.26 (0.15)
------ ------ ------ ------ ------
LESS DIVIDENDS AND DISTRIBUTIONS:
Dividends from net investment income 0.00 0.00 (0.28) 0.00 0.00
Distributions from net realized gains (2.81) (0.03) (0.11) 0.00 0.00
------ ------ ------ ------ ------
Total dividends and distributions (2.81) (0.03) (0.39) 0.00 0.00
------ ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD $29.62 $19.09 $10.46 $11.11 $ 9.85
====== ====== ====== ====== ======
Total return 73.15%(DAGGER) 83.06% (2.31)% 12.79% (1.50)%(DAGGER)
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s omitted) $6,277 $ 54 $ 1 $ 1 $ 6
Ratio of expenses to average net assets@ 1.94% 1.91% 1.90% 1.90% 1.90%*
Ratio of net loss to average net assets (.71)%* (1.24)% (1.26)% (1.15)% (.78)%*
Decrease reflected in above operating expense
ratios due to waivers/reimbursements .26%* 1.27% 45.95% 11.16% 22.23%*
Portfolio turnover rate 29.01% 239.88% 186.67% 207.25% 5.85%
<FN>
--------------------------------------------------------------------------------
** For the period September 30, 1996 (commencement of operations) through
October 31, 1996.
(a) Per share information is calculated using the average shares
outstanding method.
@ Interest earned on uninvested cash balances is used to offset portions
of the transfer agent expenses. These arrangements resulted in a
reduction to the Advisor Class shares' expenses by .04%, .01%, .00%,
.00% and .00% for the six months ended April 30, 2000, and for each of
the years ended October 31, 1999, 1998 and 1997 and for the period
ended October 31, 1996, respectively. The Advisor Class shares'
operating expense ratios after reflecting these arrangements were 1.90%
for the six months ended April 30, 2000, and for each of the years
ended October 31, 1999, 1998, and 1997 and for the period ended October
31, 1996, respectively.
(DAGGER) Non annualized.
* Annualized.
</FN>
</TABLE>
See Accompanying Notes to Financial Statements.
40
<PAGE>
WARBURG PINCUS INTERNATIONAL EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
The Warburg Pincus International Equity Fund ("International Equity"), and
the Warburg Pincus Global Post-Venture Capital Fund ("Global Post-Venture
Capital"), 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, and the Warburg Pincus Emerging Markets Fund
("Emerging Markets"), a Maryland Corporation, which is registered under the 1940
Act as a non-diversified, open-end management investment company (each, a "Fund"
and collectively, the "Funds").
Investment objectives for each Fund are as follows: International Equity
seeks long-term capital appreciation; Emerging Markets seeks growth of capital;
and Global Post-Venture Capital seeks long-term growth of capital.
Emerging Markets offers three classes of shares, one class being referred to
as the Common Class, one class being referred to as the Advisor Class, and one
class being referred to as the Institutional Class. International Equity and
Global Post-Venture Capital currently offer the Common Class shares and Advisor
Class shares. Common, Advisor, and Institutional shares in each Fund represent
an equal pro rata interest in each Fund, except that they bear different
expenses which reflect the difference in the range of services provided to them.
Common Class shares for Emerging Markets and Global Post-Venture Capital bear
expenses paid pursuant to a shareholder servicing and distribution plan at an
annual rate of .25% of the average daily net asset value of each Fund's Common
Class shares. Common Class shares of International Equity and Institutional
Class shares of Emerging Markets are not subject to shareholder servicing or
distribution fees. Advisor Class shares bear expenses paid pursuant to a
distribution plan at an annual rate not to exceed .75% of the average daily net
asset value of the relevant 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 valued at the
mean between the last reported bid and asked prices. If market quotations are
not readily available, securities and other assets are valued by another method
that the Board of Directors believes accurately reflects fair value. Debt
obligations that will 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.
41
<PAGE>
WARBURG PINCUS INTERNATIONAL EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES -- (CONT'D)
Global Post-Venture Capital initially values its investments in
private-equity portfolios at cost. After that, the Fund values these investments
according to reports from the private-equity portfolios that Abbott Capital
Management, LLC ("Abbott"), the Fund's sub-investment adviser, generally
receives on a quarterly basis. The Fund's net asset value typically will not
reflect interim changes in the values of its private-equity-portfolio
investments.
When a Fund writes or purchases a call or a put option, an amount equal to
the premium received or paid by the Fund is recorded as a liability or asset,
the value of which is marked-to-market daily to reflect the current market value
of the option. When the option expires, the Fund realizes a gain or loss equal
to the amount of the premium received or paid. When the Fund exercises an option
or enters into a closing transaction by purchasing or selling an offsetting
option, it realizes a gain or loss without regard to any unrealized gain or loss
on the underlying security. The potential loss associated with purchasing an
option is limited to the premium paid, and the premium would partially offset
any gains achieved from its use.
The books and records of the Funds are maintained in U.S. dollars.
Transactions denominated in foreign currencies are recorded at the current
prevailing exchange rates. All assets and liabilities denominated in foreign
currencies are translated into U.S. dollar amounts at the current exchange rate
at the end of the period. Translation gains or losses resulting from changes in
the exchange rate during the reporting period and realized gains and losses on
the settlement of foreign currency transactions are reported in the results of
operations for the current period. The 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.
The Funds may invest in securities of foreign countries and governments which
involve certain risks in addition to those inherent in domestic investments.
Such risks generally include, among others, currency risks (fluctuations in
currency exchange rates), information risk (key information may be inaccurate or
unavailable) and political risk (expropriation, nationalization or the
imposition of capital or currency controls or punitive taxes). Other risks of
investing in foreign securities include liquidity and valuation risks.
42
<PAGE>
WARBURG PINCUS INTERNATIONAL EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES -- (CONT'D)
Each Fund's investments in securities of issuers located in less developed
countries considered to be "emerging markets" involve risks in addition to those
generally applicable to foreign securities. Focusing on emerging (less
developed) markets involves higher levels of risk, including increased currency,
information, liquidity, market, political and valuation risks. Deficiencies in
regulatory oversight, market infrastructure, shareholder protections and company
laws could expose the Fund to operational and other risks as well. Some
countries may have restrictions that could limit the Funds' access to attractive
opportunities. Additionally, emerging markets often face serious economic
problems (such as high external debt, inflation and unemployment) that could
subject the Fund to increased volatility or substantial declines in value.
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. Effective November 1, 1998,
class specific expenses no longer include transfer agent fees; accordingly these
fees will be allocated proportionately based upon the relative net asset value
of outstanding shares. The cost of investments sold is determined by use of the
specific identification method for both financial reporting and income tax
purposes.
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 for the potential inability of
counterparties to meet the terms of their contracts and from unanticipated
movements in the value of a foreign currency relative to the U.S. dollar. Each
Fund will enter into forward foreign currency contracts primarily for hedging
purposes. Forward foreign 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
an offsetting position is entered into. At April 30, 2000, none of the Funds had
open forward foreign currency contracts.
Dividends from net investment income and distributions of net realized
capital gains, if any, are declared and paid at least annually for all Funds.
However, to the extent that a net realized capital gain can be reduced by a
capital loss carryover, such gain will not be distributed. Income and capital
gain distributions are
43
<PAGE>
WARBURG PINCUS INTERNATIONAL EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES -- (CONT'D)
determined in accordance with federal income tax regulations which may differ
from generally accepted accounting principles.
No provision is made for federal taxes as it is each Fund's intention to
continue to qualify for and elect the tax treatment applicable to regulated
investment companies under the Internal Revenue Code of 1986, as amended (the
"Code"), and make the requisite distributions to its shareholders which will be
sufficient to relieve it from federal income and excise taxes.
The Funds may be subject to taxes imposed by countries in which they invest,
with respect to their investments in issuers existing or operating in such
countries. Such taxes are generally based on income earned or repatriated and
capital gains realized on the sale of such investments. The Funds accrue such
taxes when the related income or capital gains are earned.
Costs incurred in connection with organization and offering of shares have
been deferred and are being amortized over a period of five years and one year,
respectively, from the date each Fund commenced its operations.
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, the Funds' investment adviser ("CSAM"), may transfer uninvested
cash balances to a pooled cash account, which is invested in repurchase
agreements secured by U.S. government securities. Securities pledged as
collateral for repurchase agreements are held by the Funds' custodian bank until
the agreements mature. Each agreement requires that the market value of the
collateral be sufficient to cover payments of interest and principal; however,
in the event of default or bankruptcy by the other party to the agreement,
retention of the collateral may be subject to legal proceedings. At April 30,
2000, the Funds had no investments in repurchase agreements.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses during
the reporting period. Actual results could differ from these estimates.
The Funds have an arrangement with their transfer agent whereby interest
earned on uninvested cash balances is used to offset a portion of the transfer
agent expense.
44
<PAGE>
WARBURG PINCUS INTERNATIONAL EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES -- (CONT'D)
For the six months ended April 30, 2000, the Funds received credits or
reimbursements under this arrangement as follows:
FUND AMOUNT
---- --------
International Equity $192,603
Emerging Markets 13,493
Global Post-Venture Capital 14,689
2. INVESTMENT ADVISER, CO-ADMINISTRATORS AND DISTRIBUTOR
CSAM serves as each Fund's investment advisor. For its investment advisory
services, CSAM receives the following fees based on each Fund's average daily
net assets:
FUND ANNUAL RATE
------ ---------------------------------
International Equity 1.00% of average daily net assets
Emerging Markets 1.25% of average daily net assets
Global Post-Venture Capital 1.25% of average daily net assets
For the six months ended April 30, 2000, investment advisory fees and waivers
were as follows:
GROSS NET
FUND ADVISORY FEE WAIVER ADVISORY FEE
---- ------------ -------- ------------
International Equity $6,739,544 $ 0 $6,739,544
Emerging Markets 629,283 (312,571) 316,712
Global Post-Venture Capital 489,330 (111,807) 377,523
Abbott Capital Management, LLC ("Abbott") serves as sub-investment adviser
for Global Post-Venture Capital's assets invested in U.S. or foreign private
limited partnerships or other investment funds ("Private Fund Investments").
Pursuant to the sub-advisory agreement between Abbott and CSAM, Abbott is
entitled to a quarterly fee from CSAM at the annual rate of 1.00% of the value
of the Fund's Private Fund Investments as of the end of each calendar quarter.
No compensation is paid by Global Post-Venture Capital to Abbott for its
sub-investment advisory services.
Credit Suisse Asset Management Securities, Inc. ("CSAMSI") a wholly-owned
subsidiary of CSAM, and PFPC Inc. ("PFPC"), an indirect, wholly-owned subsidiary
of PNC Financial Services Group ("PNC"), serve as each Fund's co-administrators.
For its administrative services, CSAMSI currently receives a fee calculated at
an annual rate of .10% of each Fund's average daily net assets.
45
<PAGE>
WARBURG PINCUS INTERNATIONAL 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 services fees earned
by CSAMSI were as follows:
FUND CO-ADMINISTRATION FEE
---- ---------------------
International Equity $673,954
Emerging Markets 38,323
Global Post-Venture Capital 39,146
For administrative services, PFPC currently receives a fee calculated at an
annual rate of .12% on each Fund's first $250 million in average daily net
assets, .10% on the next $250 million in average daily net assets, .08% on the
next $250 million in average daily net assets and .05% of the average daily net
assets over $750 million, exclusive of out-of-pocket expenses.
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:
<TABLE>
<CAPTION>
NET
FUND CO-ADMINISTRATION FEE WAIVER CO-ADMINISTRATION FEE
---- --------------------- ------- ---------------------
<S> <C> <C> <C>
International Equity $531,713 $ 0 $531,713
Emerging Markets 67,476 0 67,476
Global Post-Venture Capital 50,856 (6,438) 44,418
</TABLE>
CSAMSI served as distributor of each Fund's shares until January 1, 2000. On
January 1, 2000, Provident Distributors, Inc. ("PDI") replaced CSAMSI as
distributor to each Fund. No compensation is 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 Emerging Markets Fund and the
Global Post-Venture Capital Fund and at an annual rate of .50% of the Advisor
Class shares of the International Equity Fund, Emerging Markets Fund, and Global
Post-Venture Fund. CSAMSI may use this fee to compensate service organizations
for shareholder servicing and distribution services.
46
<PAGE>
WARBURG PINCUS INTERNATIONAL 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, shareholder servicing and
distribution fees paid to CSAMSI were as follows:
SHAREHOLDER SERVICING
DISTRIBUTION FEE
---------------------
FUND
----
International Equity
Advisor Class shares $623,103
========
Emerging Markets
Common Class shares $122,742
Advisor Class shares 192
--------
$122,934
========
Global Post-Venture Capital
Common Class shares $ 94,802
Advisor Class shares 6,127
--------
$100,929
========
3. LINE OF CREDIT
The Funds, together with other Funds advised by CSAM, have established a $250
million committed, unsecured, line of credit facility ("Credit Facility") with
Deutsche Bank AG as administrative agent, State Street Bank and Trust Company as
operations agent, Bank of Nova Scotia as syndication agent as well as certain
other lenders, for temporary or emergency purposes primarily relating to
unanticipated Fund share 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, there were no
loans outstanding for any of the Funds. During the six months ended April 30,
2000, the following Funds had the following borrowings under the Credit
Facility:
AVERAGE MAXIMUM
AVERAGE DAILY INTEREST DAILY LOAN
FUND LOAN BALANCE RATE % OUTSTANDING
---- ------------- -------- -----------
International Equity $4,663,224 6.475% $79,341,000
Emerging Markets 1,095,521 6.449% 13,366,000
47
<PAGE>
WARBURG PINCUS INTERNATIONAL EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
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
---- ------------ ------------
International Equity $777,602,693 $926,976,192
Emerging Markets 107,020,324 121,503,589
Global Post-Venture Capital 84,331,309 21,977,671
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:
<TABLE>
<CAPTION>
UNREALIZED UNREALIZED NET UNREALIZED
FUND APPRECIATION DEPRECIATION APPRECIATION
---- ------------ ------------ --------------
<S> <C> <C> <C>
International Equity $253,075,559 $(65,158,130) $187,917,430
Emerging Markets 14,596,194 (7,947,434) 6,648,760
Global Post-Venture Capital 45,477,657 (54,517,226) (9,039,569)
</TABLE>
5. CAPITAL SHARE TRANSACTIONS
Each Fund (except Emerging Markets) is authorized to issue three billion full
and fractional shares of capital stock, $.001 par value per share, of which two
billion shares of each Fund are classified as Advisor Class shares. The Emerging
Markets Fund is authorized to issue three billion full and fractional shares of
capital stock, $.001 par value per share, of which one billion are classified as
Common shares, one billion are classified as Advisor shares, and one billion are
classified as Institutional shares. Transaction in classes of each Fund are as
follows:
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY FUND
COMMON CLASS SHARES ADVISOR CLASS SHARES
--------------------------------- ------------------------------
FOR THE FOR THE
SIX MONTHS FOR THE SIX MONTHS FOR THE
ENDED YEAR ENDED ENDED YEAR ENDED
APRIL 30, 2000 OCTOBER 31, APRIL 30, 2000 OCTOBER 31,
(UNAUDITED) 1999 (UNAUDITED) 1999
--------------- --------------- -------------- -------------
<S> <C> <C> <C> <C>
Shares sold 76,896,438 93,224,012 2,334,591 2,460,276
Shares issued to shareholders on
reinvestment of dividends and distributions 256,152 0 18,613 0
Shares redeemed (80,849,158) (126,018,150) (3,017,191) (9,926,602)
--------------- --------------- ------------ -------------
Net decrease in shares outstanding (3,696,568) (32,794,138) (663,987) (7,466,326)
=============== =============== ============ =============
Proceeds from sale of shares $ 1,971,314,494 $ 1,778,780,264 $ 59,946,283 $ 46,326,070
Reinvestment of dividends and distributions 6,250,096 0 449,139 0
Net asset value of shares redeemed (2,102,131,260) (2,378,091,713) (77,398,390) (181,663,467)
--------------- --------------- ------------ -------------
Net decrease from capital share transactions $ (124,566,670) $ (599,311,449) $(17,002,968) $(135,337,397)
=============== =============== ============ =============
</TABLE>
48
<PAGE>
WARBURG PINCUS INTERNATIONAL EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
5. CAPITAL SHARE TRANSACTIONS -- (CONT'D)
<TABLE>
<CAPTION>
EMERGING MARKETS
INSTITUTIONAL
COMMON CLASS SHARES ADVISOR CLASS SHARES CLASS SHARES
----------------------------- ------------------------------ --------------
FOR THE FOR THE FOR THE
SIX MONTHS FOR THE SIX MONTHS FOR THE SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED ENDED
APRIL 30, 2000 OCTOBER 31, APRIL 30, 2000 OCTOBER 31, APRIL 30, 2000
(UNAUDITED) 1999 (UNAUDITED) 1999 (UNAUDITED)
-------------- ------------- -------------- ------------ --------------
<S> <C> <C> <C> <C> <C>
Shares sold 16,950,216 20,639,374 15,789 3,005 436,578
Shares redeemed (16,721,024) (22,454,708) (12,663) (2,367) (5,620)
-------------- ------------- --------- -------- ----------
Net increase (decrease) in
shares outstanding 229,192 (1,815,334) 3,126 638 430,958
============== ============= ========= ======== ==========
Proceeds from sale of shares $ 209,187,646 $ 164,584,361 $ 202,387 $ 27,005 $6,220,146
Net asset value of shares redeemed (211,665,538) (180,042,232) (162,368) (16,254) (74,816)
-------------- ------------- --------- -------- ----------
Net increase (decrease) from capital
share transactions $ (2,477,892) $ (15,457,871) $ 40,019 $ 10,751 $6,145,330
============== ============= ========= ======== ==========
</TABLE>
<TABLE>
<CAPTION>
GLOBAL POST-VENTURE CAPITAL
COMMON CLASS SHARES ADVISOR CLASS SHARES
--------------------------------- ------------------------------
FOR THE FOR THE
SIX MONTHS FOR THE SIX MONTHS FOR THE
ENDED YEAR ENDED ENDED YEAR ENDED
APRIL 30, 2000 OCTOBER 31, APRIL 30, 2000 OCTOBER 31,
(UNAUDITED) 1999 (UNAUDITED) 1999
--------------- --------------- -------------- -------------
<S> <C> <C> <C> <C>
Shares sold 7,170,513 251,394 239,681 2,700
Shares issued to shareholders on
reinvestment of dividends and distributions 67,714 971 92 0
Shares redeemed (2,388,891) (222,874) (30,671) (4)
------------ ----------- ---------- -------
Net increase in shares outstanding 4,849,336 29,491 209,102 2,696
============ =========== ========== =======
Proceeds from sale of shares $225,912,275 $ 4,427,359 $7,745,241 $49,059
Reinvestment of dividends and distributions 1,654,263 11,069 2,232 4
Net asset value of shares redeemed (72,638,801) (3,738,096) (934,381) (71)
------------ ----------- ---------- -------
Net increase from capital share transactions $154,927,737 $ 700,332 $6,813,092 $48,992
============ =========== ========== =======
</TABLE>
49
<PAGE>
WARBURG PINCUS INTERNATIONAL EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
6. SHAREHOLDER MEETING RESULTS
A special meeting of shareholders of Warburg, Pincus Emerging Markets II
Fund, Inc. (the "EM II Fund") was held on February 10, 2000. The following
matter was voted upon by the shareholders and the resulting votes are presented
below.
To approve the Agreement and Plan of Reorganization, dated December 1, 1999
and amended as of January 27, 2000, providing that (1) the EM II Fund would
transfer to Warburg, Pincus Emerging Markets Fund, Inc. (the "EM Fund") all or
substantially all of the EM II Fund's assets in exchange for shares of the EM
Fund and the assumption by the EM Fund of the EM II Fund's liabilities, (2) such
shares of the EM Fund would be distributed to the shareholders of the EM II Fund
in liquidation of the EM II Fund, and (3) the EM II Fund would be subsequently
terminated.
For 247,793.230 shares (52.61%)
Against 361.000 shares (0.07%)
Abstain 928.000 shares (0.20%)
The Agreement and Plan of Reorganization was subsequently implemented as of
the close of business February 11, 2000.
A special meeting of shareholders of Warburg, Pincus Post-Venture Capital
Fund, Inc. (the "PVC Fund") was held on February 24, 2000. The following matter
was voted upon by the shareholders and the resulting votes are presented below.
To approve the Agreement and Plan of Reorganization, dated December 1, 1999
and amended as of January 27, 2000, providing that (1) the PVC Fund would
transfer to Warburg, Pincus Global Post-Venture Capital Fund, Inc. (the "GPVC
Fund") all or substantially all of the PVD Fund's assets in exhange for shares
of the GPVC Fund and the assumption by the GPVC Fund of the PVC Fund's
liabilities, (2) such shares of the GPVC Fund would be distributed to the
shareholders of the PVC Fund in liquidation of the PVC Fund, and (3) the PVC
Fund would be subsequently terminated.
For 1,336,651.096 shares (50.4096%)
Against 124,528.924 shares (4.6964%)
Abstain 23,648.824 shares (0.8919%)
The Agreement and Plan of Reorganization was subsequently implemented as of
the close of business February 25, 2000.
50
<PAGE>
WARBURG PINCUS INTERNATIONAL EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
7. NET ASSETS
At April 30, 2000, capital contributions, undistributed net investment
income, accumulated net realized gain (loss) from security transactions and
current period dividends and distributions have been adjusted for current period
permanent book/tax differences which arose principally from differing book/tax
treatments of foreign currency, and foreign taxes on capital gains.
International Equity, Emerging Markets, and Global Post-Venture Capital
reclassified ($776,665), ($285,636), and ($18,321), respectively, from
undistributed net investment loss to accumulated net realized gain on security
transactions and foreign currency related items. International Equity, Emerging
Markets, and Global Post-Venture Capital reclassified $5,689,335, $1,081,214,
and 224,285, respectively, from accumulated net investment loss to capital
contributions. Emerging Markets reclassified $940,534 from accumulated net
realized gain from security transactions to ordinary income. Net investment
income, net realized gain (loss) or investments and net assets were not affected
by these reclassifications.
8. CAPITAL LOSS CARRYOVER
At April 30, 2000, capital loss carryovers available to offset possible
future capital gains were as follows:
CAPITAL LOSS CARRYOVER
FUND EXPIRING IN 2006
---- ----------------------
International Equity $22,258,329
Emerging Markets 59,603,866
9. OTHER FINANCIAL HIGHLIGHTS
Emerging Markets offers three classes of shares, one class being referred to
as the Common Class, one class being referred to as the Advisor Class, and one
class being referred to as the Institutional Class. International Equity and
Global Post-Venture Capital currently offer the Common Class shares and Advisor
Class shares. Common, Advisor, and Institutional shares in each Fund represent
an equal pro rata interest in each Fund. The financial highlights for an Advisor
Class share of each Fund as well as the financial highlights for an
Institutional Class share of Emerging Markets are as follows:
51
<PAGE>
WARBURG PINCUS INTERNATIONAL EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
9. OTHER FINANCIAL HIGHLIGHTS -- (CONT'D)
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY
---------------------------------------------------------------------------------------
COMMON CLASS
---------------------------------------------------------------------------------------
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 $ 21.88 $ 16.64 $ 20.76 $ 20.69 $ 19.30 $ 20.51
-------- -------- ---------- ---------- ---------- ----------
INVESTMENT ACTIVITIES:
Net investment income (loss) (0.06) 0.13 0.12(a) 0.04 0.22 0.12
Net gains (losses) on investments
and foreign currency related items
(both realized and unrealized) 2.88 5.11 (1.38) 0.88 1.73 (0.67)
-------- -------- ---------- ---------- ---------- ----------
Total from investment
activities 2.82 5.24 (1.26) 0.92 1.95 (0.55)
-------- -------- ---------- ---------- ---------- ----------
LESS DIVIDENDS AND DISTRIBUTIONS:
Dividends from net investment
income (0.16) 0.00 (0.14) (0.11) (0.56) (0.13)
Distributions from net realized
gains 0.00 0.00 (2.72) (0.74) 0.00 (0.53)
-------- -------- ---------- ---------- ---------- ----------
Total dividends and
distributions (0.16) 0.00 (2.86) (0.85) (0.56) (0.66)
-------- -------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF PERIOD $ 24.54 $ 21.88 $ 16.64 $ 20.76 $ 20.69 $ 19.30
======== ======== ========== ========== ========== ==========
Total return 12.88%(DAGGER) 31.49% (6.12)% 4.54% 10.35% (2.55)%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period
(000s omitted) $998,019 $970,530 $1,283,673 $2,312,042 $2,885,453 $2,068,207
Ratio of expenses to average
net assets 1.43%@ 1.44%@ 1.36%@ 1.33%@ 1.38%@ 1.39%
Ratio of net income (loss) to
average net assets (.45)%* .59% .65% .56% .62% .69%
Portfolio turnover rate 61.17% 116.35% 95.44% 61.80% 32.49% 39.24%
<FN>
--------------------------------------------------------------------------------
(a) Per share information is calculated using the average shares
outstanding method.
@ Interest earned on uninvested cash balances is used to offset portions
of the transfer agent expenses. These arrangements resulted in a
reduction to the Common Class shares' expenses by .03%, .01%, .00%,
.01% and .01% for the six months ended April 30, 2000, and for each of
the years ended October 31, 1999, 1998, 1997 and 1996, respectively.
The Common Class shares' operating expense ratios after reflecting
these arrangements were 1.40%, 1.43%, 1.36%, 1.32% and 1.37% for the
six months ended April 30, 2000, and for each of the years ended
October 31, 1999, 1998, 1997 and 1996, respectively.
(DAGGER) Non annualized.
* Annualized.
</FN>
</TABLE>
52
<PAGE>
WARBURG PINCUS INTERNATIONAL EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
9. OTHER FINANCIAL HIGHLIGHTS -- (CONT'D)
<TABLE>
<CAPTION>
EMERGING MARKETS
-------------------------------------------------------------------------------------
COMMON CLASS
-------------------------------------------------------------------------------------
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 $ 9.27 $ 6.59 $ 10.82 $ 12.19 $ 11.28 $10.00
------- ------- ------- -------- -------- ------
INVESTMENT ACTIVITIES:
Net investment income (loss) (0.10) 0.05 0.11 0.04 0.07 0.08
Net gains (losses) on investments
and foreign currency related items
(both realized and unrealized) 2.17 2.63 (3.86) (1.34) 0.99 1.25
------- ------- ------- -------- -------- ------
Total from investment activities 2.07 2.68 (3.75) (1.30) 1.06 1.33
------- ------- ------- -------- -------- ------
LESS DIVIDENDS AND DISTRIBUTIONS:
Dividends from net investment income 0.00 0.00 (0.04) (0.03) (0.08) (0.05)
Distributions from net realized gains 0.00 0.00 (0.44) (0.04) (0.07) 0.00
------- ------- ------- -------- -------- ------
Total dividends and distributions 0.00 0.00 (0.48) (0.07) (0.15) (0.05)
------- ------- ------- -------- -------- ------
NET ASSET VALUE, END OF PERIOD $ 11.34 $ 9.27 $ 6.59 $ 10.82 $ 12.19 $11.28
======= ======= ======= ======== ======== ======
Total return 22.33%(DAGGER) 40.67% (35.95)% (10.71)% 9.46% 13.33%(DAGGER)
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period (000s omitted) $85,540 $67,783 $60,189 $155,806 $218,421 $6,780
Ratio of expenses to average
net assets 1.68%@ 1.66%@ 1.65%@ 1.66%@ 1.62%@ 1.00%*
Ratio of net income (loss) to average
net assets (1.52)%* .55% 1.00% .24% .31% 1.25%*
Decrease reflected in above
operating expense ratios due
to waivers/reimbursements .51%* .73% .63% .46% .77% 11.08%*
Portfolio turnover rate 117.51% 196.07% 125.59% 92.48% 61.84% 57.76%
<FN>
--------------------------------------------------------------------------------
** For the period December 30, 1994 (commencement of operations) through
October 31, 1995.
@ Interest earned on uninvested cash balances is used to offset portions
of the transfer agent expenses. These arrangements resulted in a
reduction to the Common Class shares' expenses by .03%, .01%, .00%,
.01% and .01% for the six months ended April 30, 2000, and for each of
the years ended October 31, 1999, 1998, 1997 and 1996, respectively.
The Common Class shares' operating expense ratios after reflecting
these arrangements were 1.65%, 1.65%, 1.65%, 1.65% and 1.61% for the
six months ended April 30, 2000, and for each of the years ended
October 31, 1999, 1998, 1997 and 1996, respectively.
(DAGGER) Non annualized.
* Annualized.
</FN>
</TABLE>
53
<PAGE>
WARBURG PINCUS INTERNATIONAL EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
9. OTHER FINANCIAL HIGHLIGHTS -- (CONT'D)
<TABLE>
<CAPTION>
GLOBAL POST-VENTURE CAPITAL
------------------------------------------------------------------------
COMMON CLASS
------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE YEAR ENDED OCTOBER 31,
APRIL 30, 2000 ----------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996**
-------------- -------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
PER-SHARE DATA
Net asset value, beginning of period $19.25 $10.53 $11.15 $ 9.86 $10.00
------ ------ ------ ------ ------
INVESTMENT ACTIVITIES:
Net investment loss (0.04) (0.09) (0.02) (0.13) 0.00
Net gains (losses) on investments and foreign
currency related items (both realized
and unrealized) 13.51 8.84 (0.20) 1.42 (0.14)
------ ------ ------ ------ ------
Total from investment activities 13.47 8.75 (0.22) 1.29 (0.14)
------ ------ ------ ------ ------
LESS DIVIDENDS AND DISTRIBUTIONS:
Dividends from net investment income 0.00 0.00 (0.29) 0.00 0.00
Distributions from net realized gains (2.80) (0.03) (0.11) 0.00 0.00
------ ------ ------ ------ ------
Total dividends and distributions (2.80) (0.03) (0.40) 0.00 0.00
------ ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD $29.92 $19.25 $10.53 $11.15 $ 9.86
====== ====== ====== ====== ======
Total return 73.25%(DAGGER) 83.36% (1.91)% 13.08% (1.40)%(DAGGER)
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s omitted) $156,372 $7,263 $3,661 $3,197 $3,007
Ratio of expenses to average net assets@ 1.69% 1.66% 1.65% 1.66% 1.65%*
Ratio of net loss to average net assets (.52)%* (.61)% (1.01)% (.96)% (.20)%*
Decrease reflected in above operating expense
ratios due to waivers/reimbursements .30%* 2.07% 3.90% 6.48% 21.71%*
Portfolio turnover rate 29.01% 239.88% 186.67% 207.25% 5.85%(DAGGER)
<FN>
--------------------------------------------------------------------------------
** For the period September 30, 1996 (commencement of operations) through
October 31, 1996.
@ Interest earned on uninvested cash balances is used to offset portions
of the transfer agent expenses. These arrangements resulted in a
reduction to the Common Class shares' expenses by .04%, .01%, .00%,
.01% and .00% for the six months ended April 30, 2000, and for the
years ended October 31, 1999, 1998, 1997 and 1996, respectively. The
Common Class shares' expense ratios after reflecting these arrangements
were 1.65% for the six months ended April 30, 2000, and for each of the
years ended October 31, 1999, 1998, 1997 and 1996, respectively.
(DAGGER) Non annualized.
* Annualized.
</FN>
</TABLE>
54
<PAGE>
WARBURG PINCUS INTERNATIONAL EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
9. OTHER FINANCIAL HIGHLIGHTS -- (CONT'D)
<TABLE>
<CAPTION>
EMERGING MARKETS
----------------------
INSTITUTIONAL CLASS
----------------------
FEBRUARY 12, 2000
(COMMENCEMENT
OF OPERATIONS)
THROUGH APRIL 30, 2000
(UNAUDITED)
----------------------
<S> <C>
PER-SHARE DATA
Net asset value, beginning of period $14.26
------
INVESTMENT ACTIVITIES:
Net investment loss (0.04)
Net losses on investments and foreign currency related items
(both realized and unrealized) (2.87)
------
Total from investment activities (2.91)
------
LESS DIVIDENDS AND DISTRIBUTIONS:
Dividends from net investment income 0.00
Distributions from net realized gains 0.00
------
Total dividends and distributions 0.00
------
NET ASSET VALUE, END OF PERIOD $11.35
======
Total return (20.41)%(DAGGER)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s omitted) $4,892
Ratio of expenses to average net assets 1.35%*
Ratio of net income (loss) to average net assets (4.04)%*
Decrease reflected in above operating expense ratios
due to waivers/reimbursements .26%*
Portfolio turnover rate 117.51%
<FN>
--------------------------------------------------------------------------------
(DAGGER) Non annualized.
* Annualized.
</FN>
</TABLE>
55
<PAGE>
This page intentionally left blank
<PAGE>
--------------------------
WARBURG PINCUS
ADVISOR FUNDS
PROVIDENT
DISTRIBUTORS, INC.,
DISTRIBUTOR
--------------------------
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 Advisor Funds are advised by
Credit Suisse Asset Management, LLC.
(LOGO)
WARBURG PINCUS FUNDS
PART OF CREDIT | ASSET
SUISSE | MANAGEMENT
[GRAPHIC OMITTED]
ADISF-3-0400
