[GRAPHICS OMITTED]
WARBURG PINCUS FUND
PART OF CREDIT SUISSE
ASSET MANAGEMENT
SEMIANNUAL
REPORT
APRIL 30, 2000
(UNAUDITED)
WARBURG PINCUS INSTITUTIONAL FUND, INC.
(BULLET) VALUE PORTFOLIO
(BULLET) SMALL COMPANY VALUE PORTFOLIO
(BULLET) SMALL COMPANY GROWTH PORTFOLIO
(BULLET) POST-VENTURE CAPITAL PORTFOLIO
More complete information about the Fund and the Portfolios, 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
Funds, P.O. Box 9030, Boston, MA 02205-9030.
Provident Distributors, Inc., Distributor, located at Four Falls Corporate
Center 6th Floor, West Conshohocken, PA 19428-2961 is not affiliated with Credit
Suisse Asset Management. Warburg Pincus Funds are advised by Credit Suisse Asset
Management, LLC.
<PAGE>
FROM TIME TO TIME, THE PORTFOLIOS' INVESTMENT ADVISER AND CO-ADMINISTRATORS MAY
WAIVE SOME FEES AND/OR REIMBURSE SOME EXPENSES, WITHOUT WHICH PERFORMANCE WOULD
BE LOWER. WAIVERS AND/OR REIMBURSEMENTS ARE SUBJECT TO CHANGE.
RETURNS ARE HISTORICAL AND INCLUDE CHANGE IN SHARE PRICE AND REINVESTMENT OF
DIVIDENDS AND CAPITAL GAINS. PAST PERFORMANCE CANNOT GUARANTEE FUTURE RESULTS.
RETURNS AND SHARE PRICE WILL FLUCTUATE, AND REDEMPTION VALUE MAY BE MORE OR LESS
THAN ORIGINAL COST.
THE VIEWS OF THE PORTFOLIOS' MANAGEMENT ARE AS OF THE DATE OF THE LETTERS AND
HOLDINGS DESCRIBED IN THIS DOCUMENT ARE AS OF APRIL 30, 2000; THESE VIEWS AND
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 FDIC INSURED AND ARE NOT
GUARANTEED BY CSAM OR ANY AFFILIATE. FUND INVESTMENTS ARE SUBJECT TO INVESTMENT
RISKS, INCLUDING LOSS OF YOUR INVESTMENT.
<PAGE>
WARBURG PINCUS INSTITUTIONAL FUND -- VALUE PORTFOLIO
SEMIANNUAL INVESTMENT ADVISER'S REPORT -- APRIL 30, 2000
--------------------------------------------------------------------------------
June 20, 2000
Dear Shareholder:
For the six months ended April 30, 2000, Warburg Pincus Institutional
Fund--Value Portfolio had a loss of 1.22%, vs. a return of 7.19% for the S&P 500
Index.* The Portfolio's one-year return through April 30, 2000 was -4.52%. Its
since-inception (on June 30, 1997) average annual total return through April 30,
2000 was 11.08%.
Effective December 31, 1999, Scott T. Lewis serves as Co-Portfolio Manager,
and Brian S. Posner no longer serves as Co-Portfolio Manager. Effective March
27, 2000, Robert E. Rescoe serves as Co-Portfolio Manager, and Stacy Dutton no
longer serves as Co-Portfolio Manager.
MANAGER COMMENTARY
The period was an overall positive, though quite turbulent, period for the
U.S. stock market. Stocks of rapid-growth companies once again paced the
market's rally, though these were particularly volatile, especially within the
technology sector. Many technology and Internet names finished the period on a
difficult note, suffering double-digit losses in April, a correction fueled by
worries over inflation and interest rates and other factors, such as concerns
over the government's anti-trust suit against Microsoft.
Against this backdrop, the Portfolio had a loss, hindered by the market's
ultimate preference for growth stocks during the period and by weakness in
specific areas, for example the capital-equipment sector. There were, to be
sure, some bright spots, including the Portfolio's energy holdings, which were
buoyed by rising oil prices and ongoing restructuring activity in the industry.
We made few noteworthy changes to the Portfolio during the period with
respect to sector emphasis or, for that matter, individual holdings. With few
exceptions, we continued to view our holdings as attractive, both on an absolute
basis (i.e., based on our analysis of a company's underlying worth) and on their
potential to outperform the broader market over time (due, e.g., to positive
earnings surprises).
We maintained a sizable weighting in the energy area. We believe that a
number of these companies have good long-term prospects, especially those
integrated, multinational oil companies engaged in consolidation activity. Such
activity, in our view, will result in significant cash-flow and earnings
improvements over time, even if energy prices remain flat or begin to pull back
(though our long-term outlook on the supply/demand backdrop for energy remains
constructive). We maintained a small but still-meaningful
1
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WARBURG PINCUS INSTITUTIONAL FUND -- VALUE PORTFOLIO
SEMIANNUAL INVESTMENT ADVISER'S REPORT -- APRIL 30, 2000 (CONT'D)
--------------------------------------------------------------------------------
weighting in the oil-services area, where industry fundamentals have improved
significantly over the past two years, a trend that we believe will continue.
Another area of emphasis for the Portfolio, on the margin, remained financial
companies. We maintained noteworthy weightings in both the banks and savings &
loan sector and the more-diversified financial-services sector. Our focus in the
bank area remained on companies well-positioned to benefit from an expanding
economy, not the least of which in our view are regional banks with sizable
industrial/commercial loan portfolios.
Elsewhere of note, we maintained significant exposure to the industrial
manufacturing and capital-equipment sectors. A number of these companies offer
compelling value in our judgment, given relatively low valuations and these
companies' leverage to economic growth.
The rest of the Portfolio remained invested across a wide range of sectors,
including the telecommunications and equipment area. Notwithstanding the
generally lofty valuations seen here, we continued to view certain stocks as
compelling. We also had a noteworthy weighting in the consumer area, chiefly via
the retail sector, though we also continued to find attractive stocks in the
food, beverages and tobacco area.
Looking ahead, we believe that sentiment toward the types of stocks targeted
by the Portfolio could improve materially in the not-too-distant future.
Valuation discrepancies between growth-oriented stocks and those typically
associated with value investing (e.g., out-of-favor economically sensitive
stocks) remain as wide as they have been in decades, however, we feel that many
value stocks represent companies with healthy and improving fundamentals. This
stands to benefit value-oriented sectors of the market, barring any retreat from
equities generally. Given the strong economy, we believe that stocks will
remain, on the whole, compelling compared to other asset classes. As ever, our
focus will remain on identifying fundamentally undervalued companies with the
brightest longer-term prospects.
Scott T. Lewis Robert E. Rescoe
Co-Portfolio Manager Co-Portfolio Manager
----------
* The S&P 500 Index is an unmanaged index (with no defined investment objective)
of common stocks, includes reinvestment of dividends, and is a registered
trademark of McGraw-Hill Co., Inc.
2
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WARBURG PINCUS INSTITUTIONAL FUND -- SMALL COMPANY VALUE PORTFOLIO
SEMIANNUAL INVESTMENT ADVISER'S REPORT -- APRIL 30, 2000
--------------------------------------------------------------------------------
June 20, 2000
Dear Shareholder:
For the six months ended April 30, 2000, Warburg Pincus Institutional
Fund--Small Company Value Portfolio had a return of 5.66%, vs. returns of 18.72%
and 8.21%, respectively, for the Russell 2000 Index* and the Russell 2000 Value
Index.** The Portfolio's one-year return through April 30, 2000 was 0.38%. Its
since-inception (on October 31, 1997) average annual total return through April
30, 2000 was -8.05%.
Small-capitalization stocks had good performance for the six months, both in
absolute terms and compared to their large-cap brethren, supported by a
favorable profit outlook for the group. However, these stocks, and the group's
growth-oriented technology names in particular, were quite volatile, reflecting
fears that a strong economy would put upward pressure on inflation and interest
rates. Volatility was especially sharp late in the period, with many growth
stocks (which paced the small-cap rally for the six months) suffering
double-digit pullbacks in April, a relatively good month for small-cap value
stocks. Against this backdrop, the Portfolio had positive performance, yet
lagged its benchmark.
We made no material change to the Portfolio in terms of basic strategy during
the period, remaining focused on identifying visible catalysts that can bring
favorable attention to underfollowed, relatively inexpensive small-cap stocks.
However, we made a few adjustments to the Portfolio's sector allocation. Most
noteworthy was our increased exposure to financial-services companies (broadly
defined to include banks and real-estate investment trusts). Our decision to
add, late in the period, was based on the increasingly compelling valuations we
saw here. Our particular emphasis was on insurance and real-estate companies. It
was also based on our belief that the Fed would take a "neutral" stance on
interest rates relatively soon (financial stocks have historically tended to
rebound ahead of peaks in rate cycles).
Another sector weighting we raised was health care. Many of these stocks
declined in 1998 and 1999 as "reimbursement" reductions (stemming from the
Balanced Budget Act of 1997) were phased in. We began to see value here late
last year, believing that political pressures would restore at least some of the
rate reduction. Indeed, such legislation was approved last November, and further
rate increases could be in the offing. Our focus remained on nursing homes and
hospitals, especially those with exposure to "acute care," or long-term,
customers. Rate reductions for acute-care patients were the sharpest, and
restored funding could therefore have the most positive impact
3
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WARBURG PINCUS INSTITUTIONAL FUND -- SMALL COMPANY VALUE PORTFOLIO
SEMIANNUAL INVESTMENT ADVISER'S REPORT -- APRIL 30, 2000 (CONT'D)
--------------------------------------------------------------------------------
on these stocks. We continued to avoid health-maintenance organizations,
reflecting our ongoing concerns regarding the possible passage of "right to sue"
legislation and our general concerns over these stocks in an election year.
One weighting we lowered during the period was technology. We pared certain
holdings here on valuation considerations, while eliminating positions in
specific companies we deemed to have deteriorating fundamentals. We also
decreased our emphasis on the consumer-discretionary area, based on the Federal
Reserve's apparent desire to rein in consumer spending by raising interest
rates.
Looking ahead, we see grounds for optimism regarding the underfollowed stocks
targeted by the Portfolio. On the whole, value stocks are very compellingly
priced compared to growth stocks (especially within the small-cap arena), with
valuation discrepancies between the two groups remaining as wide as they have
been in nearly three decades. While this is no guarantee that value stocks will
see improved performance vs. growth stocks anytime soon, recent market behavior
across the market-cap-spectrum suggests that investors have become more
cognizant of valuations and are broadening their scope. For our part, we will
remain focused not on cheap stocks per se, but on stocks we deem to be
fundamentally undervalued, given factors such as their underlying companies'
balance sheet health and earnings prospects.
Kyle F. Frey
Portfolio Manager
INVESTING IN SMALL COMPANIES ENTAILS SPECIAL RISK CONSIDERATIONS. THESE ARE
DETAILED IN THE PROSPECTUS, WHICH SHOULD BE READ CAREFULLY BEFORE INVESTING.
----------
* The Russell 2000 Index is an unmanaged index (with no defined investment
objective) of approximately 2,000 small-cap stocks, includes reinvestment of
dividends, and is compiled by Frank Russell Company.
** The Russell 2000 Value Index is an unmanaged index (with no defined
investment objective) of those companies in the Russell 2000 Index with lower
price-to-book and lower forecasted growth values. Note: In light of the
Portfolio's value-stock emphasis, the Portfolio has changed its performance
benchmark from the Russell 2000 Index to the Russell 2000 Value Index,
effective May 2, 2000.
4
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WARBURG PINCUS INSTITUTIONAL FUND -- SMALL COMPANY GROWTH PORTFOLIO
SEMIANNUAL INVESTMENT ADVISER'S REPORT -- APRIL 30, 2000
--------------------------------------------------------------------------------
June 20, 2000
Dear Shareholder:
For the six months ended April 30, 2000, Warburg Pincus Institutional
Fund--Small Company Growth Portfolio had a gain of 42.93%, vs. a gain of 27.78%
for the Russell 2000 Growth Index.* The Portfolio's one-year return through
April 30, 2000 was 74.66%. Its since-inception (on December 29, 1995) average
annual total return through April 30, 2000 was 24.13%. Note: Effective 01/07/00,
Elizabeth B. Dater no longer serves as Co-Portfolio Manager of the Portfolio.
Stephen J. Lurito and Sammy Oh continue to serve as Co-Portfolio Managers.
Small-capitalization stocks had good performance for the six months, both in
absolute terms and compared to large-cap stocks. The group was supported by
optimism over small companies' profit outlook and by continued improvement in
the global economy, which reinforced the case for equities generally. These
stocks were, however, quite volatile, especially late in the period, reflecting
interest-rate uncertainties as well as concerns over valuations on technology
vs. non-technology companies and speculative excess in the IPO market.
Against this backdrop, the Portfolio had a solid showing, outperforming its
benchmark by a comfortable margin. The Portfolio's performance was driven by the
rally in small-cap stocks and by timely stock selection, especially within the
technology and communications areas. The Portfolio also saw good performances
from individual holdings within a range of other sectors, for example specific
oil-services and pharmaceutical stocks.
We made no major changes to the Portfolio during the period with regard to
overall strategy, remaining focused on rapidly growing companies with
innovative, viable products and services, seeking out stocks trading at
significant discounts to these companies' projected growth rates. With respect
to sector allocation, our primary emphasis remained on technology stocks,
broadly defined to include software, electronics and telecommunications
companies. We believe that a large number of these have good long-term
prospects, supported by the phenomenal expansion of the Internet (and the
ongoing wireless "conversion" of the Internet) and by demand for
productivity-enhancing products and services. Other noteworthy sector weightings
for the Portfolio through the period included the energy and health care areas,
where we continued to see good opportunity.
Looking ahead, we have a favorable view on the long-term prospects for
small-cap stocks, the group's propensity for short-term volatility notwith-
5
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WARBURG PINCUS INSTITUTIONAL FUND -- SMALL COMPANY GROWTH PORTFOLIO
SEMIANNUAL INVESTMENT ADVISER'S REPORT -- APRIL 30, 2000 (CONT'D)
--------------------------------------------------------------------------------
standing. The trends that have supported small-cap investing since late
1998--most specifically, relatively stable global financial conditions and a
healthy U.S. economy--appear unlikely to collapse, which should allow for ample
opportunity to add value via individual stock selection. Set within this
environment, we will continue to strive to identify stocks we deem to have the
best prospects.
Stephen J. Lurito Sammy Oh
Co-Portfolio Manager Co-Portfolio Manager
INVESTING IN SMALL COMPANIES ENTAILS SPECIAL RISK CONSIDERATIONS. THESE ARE
DETAILED IN THE PROSPECTUS, WHICH SHOULD BE READ CAREFULLY BEFORE INVESTING.
----------
* 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. The Russell 2000 Growth Index
includes reinvestment of dividends, and is compiled by Frank Russell Company.
6
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WARBURG PINCUS INSTITUTIONAL FUND -- POST-VENTURE CAPITAL PORTFOLIO
SEMIANNUAL INVESTMENT ADVISER'S REPORT -- APRIL 30, 2000
--------------------------------------------------------------------------------
June 20, 200
Dear Shareholder:
For the six months ended April 30, 2000, Warburg Pincus Institutional
Fund-Post-Venture Capital Portfolio had a gain of 52.48%, vs. gains of 27.78%
for the Russell 2000 Growth Index,* 38.11% for the Russell 2500 Growth Index**
and 26.65% for the NASDAQ Industrial Index.*** The Portfolio's one-year total
return through April 30, 2000 was 70.81%. Its since-inception (on October 31,
1997) average annual total return through April 30, 2000 was 24.28%.
The period was a solid one for the small-capitalization and aggressive-growth
stocks targeted by the Portfolio. The group was supported by optimism over these
companies' profit outlook and by a continued improvement in global economic and
financial conditions, which reinforced the case for equities generally. These
stocks were, however, quite volatile, especially late in the period, reflecting
interest-rate uncertainties as well as concerns over valuations on technology
vs. non-technology companies and speculative excess in the IPO market.
Against this backdrop, the Portfolio had solid performance, both in absolute
terms and compared to its benchmarks. The Portfolio benefited from the rally in
small-cap and aggressive-growth stocks and from timely stock selection,
particularly within the technology and communications areas.
We made no major changes to the Portfolio during the period with regard to
overall strategy. Our focus remained on well-managed, well-financed companies
offering innovative products and services. With respect to sector allocation,
our primary emphasis remained on technology stocks, broadly defined to include
computer, electronics and telecommunications companies. We believe that a large
number of these have good long-term prospects, supported by the phenomenal
expansion of the Internet (and the ongoing wireless "conversion" of the
Internet) and by a growing worldwide demand for productivity-enhancing products
and services.
Looking ahead, we remain optimistic on the long-term prospects for the
small-cap and aggressive-growth stocks targeted by the Portfolio, their
potential for continued short-term volatility notwithstanding. We also expect to
continue to see an ever-lengthening list of venture-backed investment
opportunities from which to choose, given recent strong flows into
venture-capital pools and venture capitalists' strong desire to fund "new
economy" companies in particular (and not only within the U.S., as
venture-capital
7
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WARBURG PINCUS INSTITUTIONAL FUND -- POST-VENTURE CAPITAL PORTFOLIO
SEMIANNUAL INVESTMENT ADVISER'S REPORT -- APRIL 30, 2000 (CONT'D)
--------------------------------------------------------------------------------
activity is expanding rapidly overseas). As ever, we will continue to strive to
identify stocks with the best long-term growth potential.
Elizabeth B. Dater Robert S. Janis
Co-Portfolio Manager Co-Portfolio Manager
BECAUSE OF THE NATURE OF THE PORTFOLIO'S HOLDINGS AND CERTAIN STRATEGIES IT
MAY USE, AN INVESTMENT IN THE PORTFOLIO INVOLVES CERTAIN RISKS AND MAY NOT BE
APPROPRIATE FOR ALL INVESTORS. THE PROSPECTUS CONTAINS MORE COMPLETE INFORMATION
ON THE SPECIAL RISK CONSIDERATIONS ASSOCIATED WITH POST-VENTURE-CAPITAL
INVESTMENTS. IT SHOULD BE READ CAREFULLY BEFORE INVESTING.
----------
* 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. The Russell 2000 Growth Index
includes reinvestment of dividends, and is compiled by Frank Russell
Company.
** The Russell 2500 Growth Index measures the performance of those companies in
the Russell 2500 Index with higher price-to-book values and higher
forecasted growth rates. The Russell 2500 Index is composed of the 2,500
smallest companies in the Russell 3000 Index, which measures the performance
of the 3,000 largest U.S. companies based on total market capitalization.
The Russell 2500 Index represents approximately 22% of the total market
capitalization of the Russell 3000 Index.
*** The NASDAQ Industrials Index measures the stock price performance of more
than 3,000 industrial issues included in the NASDAQ OTC Composite Index. The
NASDAQ OTC Composite Index represents 4,500 stocks traded over the counter.
8
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WARBURG PINCUS INSTITUTIONAL FUND, INC. -- VALUE PORTFOLIO
SCHEDULE OF INVESTMENTS--APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
------ -------
COMMON STOCKS (93.9%)
AEROSPACE & DEFENSE (3.1%)
Boeing Co. 300 $ 11,906
Honeywell International, Inc. 800 44,800
Textron, Inc. 200 12,387
-------------
69,093
----------
BANKS & SAVINGS & LOANS (8.7%)
AmSouth Bancorp 1,100 16,019
Bank One Corp. 600 18,300
Chase Manhattan Corp. 200 14,412
Comerica, Inc. 1,000 42,375
Compass Bancshares, Inc. 1,200 22,200
Golden West Financial Corp. 700 23,887
Wachovia Corp. 500 31,344
Wells Fargo Co. 500 20,531
----------
189,068
----------
BUILDING & BUILDING MATERIALS (1.1%)
USG Corp. 600 25,050
----------
BUSINESS SERVICES (0.8%)
Reynolds & Reynolds Co. Class A 700 16,625
----------
CAPITAL EQUIPMENT (7.4%)
American Standard Cos., Inc. + 1,000 41,000
Emerson Electric Co. 400 21,950
Ingersoll-Rand Co. 600 28,162
ITT Industries, Inc. 700 22,094
Navistar International Corp. + 600 21,000
Parker-Hannifin Corp. 600 27,900
----------
162,106
----------
CHEMICALS (0.3%)
Crompton Corp. 500 5,875
----------
COMMUNICATIONS & MEDIA (2.2%)
Comcast Corp. Special Class A Non-Voting + 400 16,025
New York Times Co. Class A 800 32,950
----------
48,975
----------
COMPUTERS (2.9%)
COMPAQ Computer Corp. 500 14,625
Hewlett-Packard Co. 200 27,000
Unisys Corp. + 900 20,869
----------
62,494
----------
CONGLOMERATES (1.4%)
Harsco Corp. 1,000 29,687
----------
See Accompanying Notes to Financial Statements.
9
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WARBURG PINCUS INSTITUTIONAL FUND, INC. -- VALUE PORTFOLIO
SCHEDULE OF INVESTMENTS (CONT'D)--APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
------ -------
COMMON STOCKS (CONT'D)
CONSUMER DURABLES (1.8%)
Ford Motor Co. 700 $ 38,281
----------
CONSUMER NON-DURABLES (0.8%)
Borg-Warner Automotive, Inc. 400 16,725
----------
ELECTRONICS (0.4%)
Harris Corp. 270 8,724
----------
ENERGY (13.3%)
Amerada Hess Corp. 600 38,175
BP Amoco PLC ADR 1,000 51,000
Devon Energy Corp. 900 43,369
Exxon Mobil Corp. 700 54,381
Royal Dutch Petroleum Co. ADR 600 34,425
Total Fina SA ADR 600 45,375
Union Pacific Resources Group, Inc. 1,200 23,025
----------
289,750
----------
FINANCIAL SERVICES (6.9%)
American General Corp. 400 22,400
Associates First Capital Corp. Class A 1,000 22,187
Fannie Mae 500 30,156
Labranche & Co., Inc. + 900 10,744
Lehman Brothers Holdings, Inc. 600 49,237
MetLife, Inc. + 1,000 16,563
----------
151,287
----------
FOOD, BEVERAGES & TOBACCO (4.9%)
General Mills, Inc. 1,000 36,375
Keebler Foods Co. 1,600 50,300
Quaker Oats Co. 300 19,556
----------
106,231
----------
HEALTHCARE (3.9%)
Baxter International, Inc. 400 26,050
Becton, Dickinson & Co. 900 23,063
Trigon Healthcare, Inc. + 1,000 35,938
----------
85,051
----------
INDUSTRIAL MANUFACTURING & PROCESSING (4.6%)
Eaton Corp. 300 25,200
Johnson Controls, Inc. 400 25,325
Minnesota Mining & Manufacturing Co. 200 17,300
Tyco International, Ltd. 700 32,156
----------
99,981
----------
See Accompanying Notes to Financial Statements.
10
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WARBURG PINCUS INSTITUTIONAL FUND, INC. -- VALUE PORTFOLIO
SCHEDULE OF INVESTMENTS (CONT'D)--APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
------ -------
COMMON STOCKS (CONT'D)
OFFICE EQUIPMENT & SUPPLIES (0.9%)
Pitney Bowes, Inc. 500 $20,438
----------
OIL SERVICES (5.4%)
Kerr-McGee Corp. 400 20,700
Nabors Industries, Inc. + 600 23,663
Pride International, Inc. + 1,400 31,675
R & B Falcon Corp. + 2,000 41,500
----------
117,538
----------
PHARMACEUTICALS (5.7%)
American Home Products Corp. 500 28,094
Aventis SA ADR 500 28,125
Lilly (Eli) & Co. 500 38,656
Pharmacia Corp. 595 29,713
----------
124,588
----------
RETAIL (8.3%)
Federated Department Stores, Inc. + 800 27,200
May Department Stores Co. 1,400 38,500
Ross Stores, Inc. 1,200 24,900
Safeway, Inc. + 600 26,475
TJX Companies, Inc. 1,700 32,619
Toys 'R' Us, Inc. + 2,100 32,025
----------
181,719
----------
TELECOMMUNICATIONS & EQUIPMENT (8.5%)
ALLTEL Corp. 400 26,650
AT&T Corp. 800 37,350
Bell Atlantic Corp. 700 41,475
MCI WorldCom, Inc. + 800 36,350
SBC Communications, Inc. 1,000 43,813
----------
185,638
----------
TRANSPORTATION (0.6%)
Burlington Northern Santa Fe Corp. 500 12,063
----------
TOTAL COMMON STOCKS (Cost $1,979,335) 2,046,987
----------
See Accompanying Notes to Financial Statements.
11
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WARBURG PINCUS INSTITUTIONAL FUND, INC. -- VALUE PORTFOLIO
SCHEDULE OF INVESTMENTS (CONT'D)--APRIL 30, 2000 (UNAUDITED)
-------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
------ -------
PREFERRED STOCK (0.7%)
REAL ESTATE (0.7%)
Equity Residential Properties Series G 7.25%
(Convertible) (Callable 09/15/02 @ $25.91) REIT 700 $ 15,313
----------
TOTAL PREFERRED STOCK (Cost $13,748) 15,313
----------
SHORT TERM INVESTMENTS (4.9%)
Institutional Money Market Trust 276 276
RBB Money Market Portfolio 106,327 106,327
----------
TOTAL SHORT TERM INVESTMENTS (Cost $106,603) 106,603
----------
TOTAL INVESTMENTS AT VALUE (99.5%)(Cost $2,099,686*) 2,168,903
OTHER ASSETS IN EXCESS OF LIABILITIES (0.5%) 11,532
----------
NET ASSETS (100.0%) $2,180,435
==========
INVESTMENT ABBREVIATIONS
ADR = American Depository Receipt
REIT = Real Estate Investment Trust
--------------------------------------------------------------------------------
+ Non-income producing security.
* Also cost for federal income tax purposes.
See Accompanying Notes to Financial Statements.
12
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WARBURG PINCUS INSTITUTIONAL FUND, INC. -- SMALL COMPANY VALUE PORTFOLIO
SCHEDULE OF INVESTMENTS--APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
------ -------
COMMON STOCKS (90.6%)
BANKS & SAVINGS & LOANS (7.1%)
Century Bancorp, Inc. Class A 770 $ 10,010
City National Corp. 300 11,044
Prosperity Bancshares, Inc. 1,050 14,634
Texas Regional Bancshares, Inc. 400 11,425
--------
47,113
--------
BUILDING & BUILDING MATERIALS (3.3%)
Centex Corp. 250 6,031
Elcor Corp. 200 6,362
Walter Industries, Inc. 900 9,619
--------
22,012
--------
BUSINESS SERVICES (3.6%)
Graco, Inc. 296 10,027
Interim Services, Inc. + 400 6,850
National Data Corp. 200 5,550
Sensormatic Electronics Corp. + 100 1,669
--------
24,096
--------
CHEMICALS (1.8%)
Crompton Corp. 1,000 11,750
--------
COMMUNICATIONS & MEDIA (1.1%)
Insight Communications Co., Inc. + 350 7,131
--------
COMPUTERS (1.7%)
Exabyte Corp. + 700 3,325
Hyperion Solutions Corp. + 100 3,033
PerkinElmer, Inc. 50 2,737
Sybase, Inc. + 100 2,019
--------
11,114
--------
CONGLOMERATES (2.6%)
Gaylord Containers Corp. Class A + 1,631 8,359
Watts Industries, Inc. Class A 655 8,761
--------
17,120
--------
CONSUMER DURABLES (7.0%)
Aftermarket Technology Corp. + 900 10,462
Harman International Industries, Inc. 300 19,612
KEMET Corp. + 50 3,725
La-Z-Boy, Inc. 400 6,275
Superior Industries International, Inc. 200 6,437
--------
46,511
--------
See Accompanying Notes to Financial Statements.
13
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WARBURG PINCUS INSTITUTIONAL FUND, INC. -- SMALL COMPANY VALUE PORTFOLIO
SCHEDULE OF INVESTMENTS (CONT'D)--APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
------ -------
COMMON STOCKS (CONT'D)
CONSUMER NON-DURABLES (4.0%)
Borg-Warner Automotive, Inc. 200 $ 8,362
WestPoint Stevens, Inc. 950 17,812
--------
26,174
--------
CONSUMER SERVICES (1.4%)
Lo-Jack Corp. + 1,300 9,344
--------
ELECTRONICS (3.2%)
Avant! Corp. + 400 7,200
Cypress Semiconductor Corp. + 50 2,597
Exar Corp. + 50 4,009
Integrated Device Technology, Inc. + 100 4,806
International Rectifier Corp. + 50 2,456
--------
21,068
--------
FINANCIAL SERVICES (10.9%)
AmeriCredit Corp. + 650 12,147
HCC Insurance Holdings, Inc. 582 6,838
Mercury General Corp. 450 12,319
Radian Group, Inc. 269 13,702
StanCorp Financial Group, Inc. 550 16,019
Webster Financial Corp. 500 10,687
--------
71,712
--------
HEALTHCARE (9.1%)
Health Management Associates, Inc. Class A + 550 8,766
ICU Medical, Inc. + 150 3,281
Manor Care, Inc. + 700 8,356
Morrison Management Specialists 495 13,705
Omnicare, Inc. 1,000 15,188
Universal Health Services, Inc. + 200 10,950
--------
60,246
--------
INDUSTRIAL MANUFACTURING & PROCESSING (1.3%)
Bethlehem Steel Corp. + 1,600 8,600
--------
LEISURE & ENTERTAINMENT (2.0%)
SCP Pool Corp. + 350 12,884
--------
METALS & MINING (2.2%)
Freeport-McMoRan Copper & Gold, Inc. + 600 5,775
National Steel Corp. Class B 1,400 8,750
--------
14,525
--------
See Accompanying Notes to Financial Statements.
14
<PAGE>
WARBURG PINCUS INSTITUTIONAL FUND, INC. -- SMALL COMPANY VALUE PORTFOLIO
SCHEDULE OF INVESTMENTS (CONT'D)--APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
------ -------
COMMON STOCKS (CONT'D)
OFFICE EQUIPMENT & SUPPLIES (0.2%)
Imation Corp. + 50 $ 1,403
--------
OIL SERVICES (8.1%)
Evergreen Resources, Inc. + 500 11,563
Global Industries, Ltd. + 900 12,825
Newpark Resources, Inc. + 600 4,950
Pride International, Inc. + 550 12,444
Varco International, Inc. + 925 11,563
--------
53,345
--------
PAPER & FOREST PRODUCTS (3.1%)
Abitibi-Consolidated, Inc. 600 6,525
Ivex Packaging Corp. + 800 7,200
Wausau-Mosinee Paper Corp. 550 6,669
--------
20,394
--------
REAL ESTATE (6.2%)
BRE Properties, Inc. Class A 400 11,175
CenterPoint Properties Corp. 200 7,175
Home Properties of New York, Inc. 350 9,800
Mission West Properties, Inc. 1,300 10,888
Western Water Co. + 4,000 2,125
--------
41,163
--------
RETAIL (0.8%)
AnnTaylor Stores Corp. + 250 5,172
--------
TRANSPORTATION (5.3%)
Airborne Freight Corp. 500 10,719
Landstar Systems, Inc. + 250 14,313
M.S. Carriers, Inc. + 414 9,833
--------
34,865
--------
UTILITIES - ELECTRIC (4.6%)
IDACORP, Inc. 250 9,219
NSTAR 265 11,677
UniSource Energy Corp. 600 9,750
--------
30,646
--------
TOTAL COMMON STOCKS (Cost $567,851) 598,388
--------
See Accompanying Notes to Financial Statements.
15
<PAGE>
WARBURG PINCUS INSTITUTIONAL FUND, INC. -- SMALL COMPANY VALUE PORTFOLIO
SCHEDULE OF INVESTMENTS (CONT'D)--APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
------ -------
SHORT TERM INVESTMENTS (12.0%)
Institutional Money Market Trust 47,595 $ 47,595
RBB Money Market Portfolio 31,714 31,714
--------
TOTAL SHORT TERM INVESTMENTS (Cost $79,309) 79,309
--------
TOTAL INVESTMENTS AT VALUE (102.6%) (Cost $647,160*) 677,697
LIABILITIES IN EXCESS OF OTHER ASSETS (2.6%) (17,151)
--------
NET ASSETS (100.0%) $660,546
========
--------------------------------------------------------------------------------
+ Non-income producing security.
* Cost for federal income tax purposes is $656,236.
See Accompanying Notes to Financial Statements.
16
<PAGE>
WARBURG PINCUS INSTITUTIONAL FUND, INC. -- SMALL COMPANY GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS--APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
------ -------
COMMON STOCKS (92.9%)
BUSINESS SERVICES (3.4%)
Breakaway Solution, Inc. + 12,600 $ 332,325
Frontline Capital Group + 59,200 1,013,800
Getty Images, Inc. + 98,700 2,998,012
Prescient Systems, Inc. # 23,668 1,999,998
QRS Corp. + 51,599 1,702,767
Seachange International, Inc. + 85,300 2,559,000
------------
10,605,902
------------
CAPITAL EQUIPMENT (1.1%)
Applied Power, Inc. Class A 116,400 3,331,950
------------
COMMUNICATIONS & MEDIA (3.7%)
About.com, Inc. + 31,600 1,084,275
Airnet Communications Corp. + 24,700 438,425
Backweb Technologies, Ltd. + 131,000 3,070,312
CapRock Communications Corp. + 42,400 1,420,400
Salem Communications Corp. Class A + 87,800 669,475
ValueVision International, Inc. + 89,900 1,792,381
Women.com Networks, Inc. + 487,277 2,436,385
YouthStream Media Networks, Inc. + 87,568 558,246
------------
11,469,899
------------
COMPUTERS (21.7%)
Allaire Corp. + 60,400 3,325,775
Aspect Development, Inc. + 82,400 5,695,900
Bluestone Software, Inc. + 39,700 836,181
BroadVision, Inc. + 66,766 2,933,531
Business Objects SA ADR + 63,400 6,205,275
Documentum, Inc. + 81,000 4,779,000
Iona Technologies PLC ADR + 50,900 2,891,756
Manugistics Group, Inc. + 94,400 4,041,500
Marimba, Inc. + 75,800 1,501,787
Mercury Interactive Corp. + 66,100 5,949,000
PC-Tel, Inc. + 66,300 2,221,050
Peregrine Systems, Inc. + 184,100 4,429,906
Puma Technology, Inc. + 51,500 1,577,187
Radiant Systems, Inc. + 131,250 2,444,531
Remedy Corp. + 90,200 4,791,875
RSA Security, Inc. + 72,800 4,272,450
Santa Cruz Operation, Inc. + 146,300 886,944
Spyglass, Inc. + 50,700 2,687,100
Sybase, Inc. + 99,200 2,002,600
Unify Corp. + 162,300 1,947,600
Wind River Systems, Inc. + 23,100 986,081
ZapMe! Corp. + 78,600 304,575
------------
66,711,604
------------
See Accompanying Notes to Financial Statements.
17
<PAGE>
WARBURG PINCUS INSTITUTIONAL FUND, INC. -- SMALL COMPANY GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS (CONT'D)--APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
------ -------
COMMON STOCKS (CONT'D)
CONSUMER SERVICES (0.7%)
DeVry, Inc. + 91,304 $ 2,174,176
Strayer Education, Inc. 5,100 104,869
------------
2,279,045
------------
ELECTRONICS (20.6%)
Alpha Industries, Inc. + 99,800 5,189,600
ANADIGICS, Inc. + 55,000 4,138,750
Asyst Technologies, Inc. + 82,800 4,429,800
Avant! Corp. + 142,531 2,565,558
Burr-Brown Corp. + 126,327 8,605,993
C-Cube Microsystems, Inc. + 73,700 4,735,225
Cymer, Inc. + 60,800 2,375,000
DSP Group, Inc. + 90,000 6,401,250
Emulex Corp. + 22,800 1,034,550
Interlink Electronics, Inc. + 70,200 2,106,000
Photronics, Inc. + 110,900 3,694,356
PRI Automation, Inc. + 45,700 3,650,287
SanDisk Corp. + 74,600 6,835,225
Telcom Semiconductor, Inc. + 119,800 2,942,587
Titan Corp. + 68,700 2,949,806
Varian Semiconductor Equipment Associates, Inc. + 27,200 1,829,200
------------
63,483,187
------------
ENERGY (1.2%)
Stone Energy Corp. + 78,500 3,709,125
------------
FINANCIAL SERVICES (1.1%)
AmeriCredit Corp. + 76,600 1,431,462
Enhance Financial Services Group, Inc. 81,100 821,137
Reinsurance Group of America, Inc. 40,000 995,000
------------
3,247,599
------------
HEALTHCARE (6.1%)
Advanced Paradigm, Inc. + 148,200 1,852,500
Coherent, Inc. + 55,400 3,202,813
Core, Inc. + 228,400 1,291,888
Foundation Health Systems, Inc. Class A + 335,400 3,374,963
MiniMed, Inc. + 47,800 5,876,413
Oxford Health Plans, Inc. + 13,600 258,400
Province Healthcare Co. + 100,000 2,887,500
------------
18,744,477
------------
INDUSTRIAL MANUFACTURING & PROCESSING (0.2%)
Mansur Industries, Inc. + 135,554 660,826
------------
See Accompanying Notes to Financial Statements.
18
<PAGE>
WARBURG PINCUS INSTITUTIONAL FUND, INC. -- SMALL COMPANY GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS (CONT'D)--APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
------ -------
COMMON STOCKS (CONT'D)
OIL SERVICES (8.3%)
BJ Services Co. + 71,800 $ 5,043,950
Cooper Cameron Corp. + 76,600 5,745,000
National-Oilwell, Inc. + 74,000 1,771,375
Petroleum Geo-Services ADR + 179,262 2,913,008
Precision Drilling Corp. + 106,900 3,420,800
Smith International, Inc. + 86,700 6,589,200
Southern Mineral Corp. + 58,875 15,896
------------
25,499,229
------------
PHARMACEUTICALS (5.4%)
Abgenix, Inc. + 26,700 2,391,319
Alkermes, Inc. + 81,800 4,355,850
ChiRex, Inc. + 81,100 1,378,700
Gene Logic, Inc.+ 54,000 1,451,250
Lynx Therapeutics, Inc.+ 77,100 1,850,400
Medarex, Inc. + 41,600 2,204,800
Medicis Pharmaceutical Corp., Class A + 66,800 2,922,500
------------
16,554,819
------------
RETAIL (1.0%)
Ames Department Stores, Inc. + 82,700 1,483,431
AnnTaylor Stores Corp. + 78,400 1,621,900
------------
3,105,331
------------
TELECOMMUNICATIONS & EQUIPMENT (16.7%)
Adaptive Broadband Corp. + 121,900 3,961,750
Advanced Fibre Communications, Inc. + 98,200 4,486,513
Antec Corp. + 122,500 6,584,375
AudioCodes, Ltd. + 44,400 3,330,000
Gilat Satellite Networks, Ltd. + 40,700 3,495,113
PairGain Technologies, Inc. + 140,900 3,504,888
Polycom, Inc. + 39,500 3,125,438
Powertel, Inc. + 53,700 3,611,325
Powerwave Technologies, Inc.+ 43,000 8,946,688
Proxim, Inc. + 33,100 2,546,631
Tekelec + 95,200 3,332,000
Viatel, Inc. + 82,000 3,136,500
Westell Technologies, Inc., Class A + 50,200 1,427,563
------------
51,488,784
------------
TRANSPORTATION (1.7%)
Airborne Freight Corp. 240,600 5,157,863
------------
TOTAL COMMON STOCKS (Cost $219,302,618) 286,049,640
------------
See Accompanying Notes to Financial Statements.
19
<PAGE>
WARBURG PINCUS INSTITUTIONAL FUND, INC. -- SMALL COMPANY GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS (CONT'D)--APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
------ -------
SHORT TERM INVESTMENTS (7.0%)
Institutional Money Market Trust 7,012,645 $ 7,012,645
RBB Money Market Portfolio 14,639,410 14,639,410
------------
TOTAL SHORT TERM INVESTMENTS (Cost $21,652,055) 21,652,055
------------
TOTAL INVESTMENTS AT VALUE (99.9%) (Cost $240,954,673*) 307,701,695
OTHER ASSETS IN EXCESS OF LIABILITIES (0.1%) 226,062
------------
NET ASSETS (100.0%) $307,927,757
============
INVESTMENT ABBREVIATIONS
ADR = American Depository Receipt
--------------------------------------------------------------------------------
# Restricted security
+ Non-Income Producing Security
* Cost for federal income tax purposes is $241,022,330.
See Accompanying Notes to Financial Statements.
20
<PAGE>
WARBURG PINCUS INSTITUTIONAL FUND, INC. -- POST-VENTURE CAPITAL PORTFOLIO
SCHEDULE OF INVESTMENTS--APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
------ -------
COMMON STOCKS (97.0%)
BANKS & SAVINGS & LOANS (1.9%)
Mellon Financial Corp. 1,100 $ 35,337
----------
BUSINESS SERVICES (9.2%)
ACNielsen Corp. + 400 9,225
Acxiom Corp. + 700 18,900
BISYS Group, Inc. + 300 18,769
DoubleClick, Inc. 200 15,175
Harte-Hanks Communications, Inc. 700 17,325
On Assignment, Inc. + 800 25,100
QRS Corp. + 200 6,600
SunGard Data Systems, Inc. + 700 24,194
TMP Worldwide, Inc. + 400 26,150
Young & Rubicam, Inc. 200 11,137
----------
172,575
----------
COMMUNICATIONS & MEDIA (13.9%)
AMFM, Inc. + 300 19,912
At Home Corp. Series A + 700 13,037
Cablevision Systems Corp. + 500 33,844
CMGI, Inc. + 300 21,375
Corus Entertainment, Inc. + 900 24,297
Hispanic Broadcasting Corp. + 200 20,212
Shaw Communications, Inc. Class B 1,800 42,637
USA Networks, Inc. + 1,600 36,800
Westwood One, Inc. + 600 21,225
Yahoo!, Inc. + 200 26,050
----------
259,389
----------
COMPUTERS (15.1%)
Amdocs, Ltd. + 500 33,844
Citrix Systems, Inc. + 800 48,850
Documentum, Inc. + 400 23,600
Excalibur Technologies Corp. + 800 28,400
Intuit, Inc. + 800 28,750
Network Appliance, Inc. + 600 44,362
PeopleSoft, Inc. + 700 9,756
Sun Microsystems, Inc. + 400 36,775
Verisign, Inc. + 200 27,875
----------
282,212
----------
CONSUMER NON-DURABLES (0.3%)
Dial Corp. 400 5,575
----------
CONSUMER SERVICES (1.0%)
DeVry, Inc. + 800 19,050
----------
See Accompanying Notes to Financial Statements.
21
<PAGE>
WARBURG PINCUS INSTITUTIONAL FUND, INC. -- POST-VENTURE CAPITAL PORTFOLIO
SCHEDULE OF INVESTMENTS (CONT'D)--APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
------ -------
COMMON STOCKS (CONT'D)
ELECTRONICS (16.0%)
Altera Corp. + 200 $ 20,450
Flextronics International, Ltd. 800 56,200
JDS Uniphase Corp. + 400 41,500
KLA-Tencor Corp. + 400 29,950
Maxim Integrated Products, Inc. + 1,000 64,813
Solectron Corp. + 300 14,044
Synopsys, Inc. + 200 8,400
Vitesse Semiconductor Corp. + 400 27,225
Xilinx, Inc. + 500 36,625
----------
299,207
----------
ENERGY (2.4%)
Newfield Exploration Co. + 1,100 44,688
----------
FINANCIAL SERVICES (5.6%)
3i Group PLC 1,200 24,204
Ambac Financial Group, Inc. 600 28,800
Amvescap PLC ADR 300 21,450
Gabelli Asset Management, Inc. Class A + 900 17,888
T. Rowe Price Associates, Inc. 300 11,438
----------
103,780
----------
FOOD, BEVERAGES & TOBACCO (1.2%)
Ben & Jerry's Homemade, Inc. Class A + 500 21,656
----------
HEALTHCARE (2.3%)
Ivax Corp. + 1,050 28,744
Oxford Health Plans, Inc. + 700 13,300
----------
42,044
----------
LEISURE & ENTERTAINMENT (1.0%)
Premier Parks, Inc. + 900 19,406
----------
OIL SERVICES (3.4%)
Cooper Cameron Corp. + 400 30,000
Nabors Industries, Inc. + 500 19,719
Petroleum Geo - Services ADR + 800 13,000
----------
62,719
----------
PHARMACEUTICALS (2.9%)
Amgen, Inc. + 400 22,400
Medimmune, Inc. + 200 31,988
----------
54,388
----------
PUBLISHING (2.4%)
Central Newspapers, Inc. Class A 700 21,481
Scholastic Corp. + 500 23,344
----------
44,825
----------
See Accompanying Notes to Financial Statements.
22
<PAGE>
WARBURG PINCUS INSTITUTIONAL FUND, INC. -- POST-VENTURE CAPITAL PORTFOLIO
SCHEDULE OF INVESTMENTS (CONT'D)--APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
------ -------
COMMON STOCKS (CONT'D)
RETAIL (3.4%)
Amazon.com, Inc. + 200 $ 11,038
AnnTaylor Stores Corp. + 1,100 22,756
Saks, Inc. 700 8,006
Tiffany & Co. 300 21,806
----------
63,606
----------
TELECOMMUNICATIONS & EQUIPMENT (15.0%)
ANTEC Corp. + 400 21,500
Cabletron Systems, Inc. + 600 13,725
CIENA Corp. + 300 37,088
Cisco Systems, Inc. + 1,000 69,328
Covad Communications Group, Inc. + 300 8,325
Exodus Communications, Inc. + 500 44,219
Gilat Satellite Networks + 400 34,350
Net2000 Communications, Inc. 50 738
Pinnacle Holdings, Inc. + 900 50,569
----------
279,842
----------
TOTAL COMMON STOCKS (Cost $1,094,311) 1,810,299
----------
SHORT TERM FUNDS (3.2%)
RBB Money Market Portfolio (Cost $60,210) 60,210 60,210
----------
TOTAL INVESTMENTS AT VALUE (100.2%) (Cost $1,154,521*) 1,870,509
LIABILITIES IN EXCESS OF OTHER ASSETS (0.2%) (3,589)
----------
NET ASSETS (100.0%) $1,866,920
==========
INVESTMENT ABBREVIATIONS
ADR = American Depository Receipt
--------------------------------------------------------------------------------
+ Non-income producing security.
* Also cost for federal income tax purposes.
See Accompanying Notes to Financial Statements.
23
<PAGE>
WARBURG PINCUS INSTITUTIONAL FUND, INC.
STATEMENTS OF ASSETS AND LIABILITIES
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SMALL COMPANY SMALL COMPANY POST-VENTURE
VALUE PORTFOLIO VALUE PORTFOLIO GROWTH PORTFOLIO CAPITAL PORTFOLIO
--------------- --------------- ---------------- -----------------
<S> <C> <C> <C> <C>
ASSETS
Investments at value (Cost - $2,099,686,
$647,160, $240,954,673,
and $1,154,521, respectively) $2,168,903 $ 677,697 $307,701,695 $1,870,509
Foreign currency (Cost - $58, $0, $0, and
$95, respectively) 56 0 0 91
Receivable for investments sold 26,655 0 1,308,812 0
Receivable from investment adviser 2,662 3,410 0 0
Dividends, interest, and reclaims
receivable 2,266 928 36,456 467
Receivable for fund shares sold 0 0 12,118 0
Prepaid expenses and other assets 17,983 2,910 8,726 3,410
---------- ---------- ------------ ----------
Total Assets 2,218,525 684,945 309,067,807 1,874,477
---------- ---------- ------------ ----------
LIABILITIES
Advisory fee payable 0 0 188,125 0
Administrative services payable 178 53 25,150 152
Payable for investments purchased 10,161 5,060 862,770 0
Payable for fund shares redeemed 0 0 3,812 0
Accrued expenses payable 27,751 19,256 59,045 7,405
Other liabilities 0 30 1,148 0
---------- ---------- ------------ ----------
Total Liabilities 38,090 24,399 1,140,050 7,557
---------- ---------- ------------ ----------
NET ASSETS
Capital stock, $.001 par value $ 212 $ 86 $ 12,739 $ 110
Paid-in capital (728,101) 1,191,182 148,499,281 1,060,037
Accumulated undistributed net investment
income 64,311 1,340 0 0
Accumulated net realized gain (loss) from
investments and foreign currency
related items 2,774,798 (562,599) 92,668,713 90,788
Net unrealized appreciation from
investments and foreign currency
related items 69,215 30,537 66,747,024 715,985
---------- ---------- ------------ ----------
Net assets $2,180,435 $ 660,546 $307,927,757 $1,866,920
========== ========== ============ ==========
NET ASSET VALUE
Net assets $2,180,435 $ 660,546 $307,927,757 $1,866,920
---------- ---------- ------------ ----------
Shares outstanding 211,635 85,880 12,738,808 109,734
---------- ---------- ------------ ----------
Net asset value, offering price
and redemption price per share $ 10.30 $ 7.69 $ 24.17 $ 17.01
========== ========== ============ ==========
</TABLE>
See Accompanying Notes to Financial Statements.
24
<PAGE>
WARBURG PINCUS INSTITUTIONAL FUND, INC.
STATEMENTS OF OPERATIONS
For the Six Months Ended April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SMALL COMPANY SMALL COMPANY POST-VENTURE
VALUE PORTFOLIO VALUE PORTFOLIO GROWTH PORTFOLIO CAPITAL PORTFOLIO
--------------- --------------- ---------------- -----------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends $23,974 $3,002 $25,640 $1,153
Interest 80,071 1,597 509,049 1,858
----------- -------- ------------ --------
Total investment income 104,045 4,599 534,689 3,011
----------- -------- ------------ --------
EXPENSES:
Investment Advisory Fees 38,686 2,807 1,470,622 9,754
Administrative Services Fees 12,207 1,990 328,792 3,087
Custodian/Sub-custodian Fees 17,736 11,175 33,124 11,500
Registration Fees 9,542 7,115 9,839 7,819
Audit Fees 6,309 5,327 8,265 5,182
Printing Fees 5,190 374 20,557 1,231
Legal Fees 2,237 233 12,993 107
Interest Expense 1,725 443 0 6
Directors Fees 1,033 969 1,054 998
Transfer Agent Fees 480 1,134 35,664 551
Miscellaneous Expenses 1,092 751 3,125 553
----------- -------- ------------ --------
96,237 32,318 1,924,035 40,788
----------- -------- ------------ --------
Less: fees waived, expenses reimbursed
and transfer agent offsets (57,551) (29,230) (306,351) (29,704)
----------- -------- ------------ --------
Total expenses 38,686 3,088 1,617,684 11,084
----------- -------- ------------ --------
Net investment income (loss) 65,359 1,511 (1,082,995) (8,073)
----------- -------- ------------ --------
NET REALIZED AND UNREALIZED GAIN (LOSS)
FROM INVESTMENTS AND FOREIGN CURRENCY
RELATED ITEMS:
Net realized gain from security and
other related transactions 2,831,440 12,187 92,743,075 309,169
Net realized gain (loss) from foreign
currency related items (1,097) 0 0 6
Net change in unrealized appreciation
(depreciation) from investments and
foreign currency related items (3,786,382) 22,182 9,749,037 360,284
Net change in unrealized appreciation
(depreciation) from foreign currency
related items (53) 0 0 (8)
----------- -------- ------------ --------
Net realized and unrealized gain (loss)
from investments and foreign
currency related items (956,092) 34,369 102,492,112 669,451
----------- -------- ------------ --------
Net increase (decrease) in net assets
resulting from operations $ (890,733) $ 35,880 $101,409,117 $661,378
=========== ======== ============ ========
</TABLE>
See Accompanying Notes to Financial Statements.
25
<PAGE>
WARBURG PINCUS INSTITUTIONAL FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SMALL COMPANY
VALUE PORTFOLIO VALUE PORTFOLIO
-------------------------------- ---------------
FOR THE SIX FOR THE SIX
MONTHS ENDED FOR THE MONTHS ENDED
APRIL 30, 2000 YEAR ENDED APRIL 30, 2000
(UNAUDITED) OCTOBER 31, 1999 (UNAUDITED)
-------------- ---------------- --------------
<S> <C> <C> <C>
FROM OPERATIONS:
Net investment income (loss) $ 65,359 $ 493,018 $ 1,511
Net realized gain (loss) from security and other related transactions 2,831,440 7,670,519 12,187
Net realized gain (loss) from foreign currency related items (1,097) (85) 0
Net change in unrealized appreciation (depreciation) from investments (3,786,382) 836,921 22,182
Net change in unrealized appreciation (depreciation) from foreign
currency related items (53) (934) 0
------------ ------------ ---------
Net increase (decrease) in net assets resulting from operations (890,733) 8,999,439 35,880
------------ ------------ ---------
FROM DIVIDENDS AND DISTRIBUTIONS:
Dividends from net investment income (450,431) (687,635) (28,404)
Distributions from net realized gains (5,453,362) 0 0
------------ ------------ ---------
Net decrease in net assets from dividends and distributions (5,903,793) (687,635) (28,404)
------------ ------------ ---------
FROM CAPITAL SHARE TRANSACTIONS:
Proceeds from sale of shares 410,681 9,544,903 170,326
Reinvestment of dividends and distributions 5,903,787 687,038 28,403
Net asset value of shares redeemed (33,671,476) (41,121,863) (182,855)
------------ ------------ ---------
Net increase (decrease) in net assets from capital share transactions (27,357,008) (30,889,922) 15,874
------------ ------------ ---------
Net increase (decrease) in net assets (34,151,534) (22,578,118) 23,350
NET ASSETS:
Beginning of period 36,331,969 58,910,087 637,196
------------ ------------ ---------
End of period $ 2,180,435 $ 36,331,969 $ 660,546
============ ============ =========
UNDISTRIBUTED NET INVESTMENT INCOME: $64,311 $450,480 $ 1,340
============ ============ =========
SMALL COMPANY SMALL COMPANY
VALUE PORTFOLIO GROWTH PORTFOLIO
--------------- ---------------------------------
FOR THE SIX
FOR THE MONTHS ENDED FOR THE
YEAR ENDED APRIL 30, 2000 YEAR ENDED
OCTOBER 31, 1999 (UNAUDITED) OCTOBER 31, 2000
---------------- -------------- ----------------
<S> <C> <C> <C>
FROM OPERATIONS:
Net investment income (loss) $ (114) $ (1,082,995) $ (1,546,937)
Net realized gain (loss) from security and other related transactions (179,993) 92,743,075 25,105,695
Net realized gain (loss) from foreign currency related items 0 0 (1,672)
Net change in unrealized appreciation (depreciation) from investments 113,672 9,749,037 49,843,000
Net change in unrealized appreciation (depreciation) from foreign
currency related items 0 0 0
----------- ------------ ------------
Net increase (decrease) in net assets resulting from operations (66,435) 101,409,117 73,400,086
----------- ------------ ------------
FROM DIVIDENDS AND DISTRIBUTIONS:
Dividends from net investment income (15,984) 0 0
Distributions from net realized gains 0 (15,956,371) 0
----------- ------------ ------------
Net decrease in net assets from dividends and distributions (15,984) (15,956,371) 0
----------- ------------ ------------
FROM CAPITAL SHARE TRANSACTIONS:
Proceeds from sale of shares 435,220 23,490,195 32,672,892
Reinvestment of dividends and distributions 15,976 14,533,727 0
Net asset value of shares redeemed (1,515,450) (52,227,823) (63,557,835)
----------- ------------ ------------
Net increase (decrease) in net assets from capital share transactions (1,064,254) (14,203,901) (30,884,943)
----------- ------------ ------------
Net increase (decrease) in net assets (1,146,673) 71,248,845 42,515,143
NET ASSETS:
Beginning of period 1,783,869 236,678,912 194,163,769
----------- ------------ ------------
End of period $ 637,196 $307,927,757 $236,678,912
=========== ============ ============
UNDISTRIBUTED NET INVESTMENT INCOME: $ 28,233 $ 0 $ 0
=========== ============ ============
POST-VENTURE
CAPITAL PORTFOLIO
-------------------------------
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) $ (8,073) $(10,625)
Net realized gain (loss) from security and other related transactions 309,169 (112,024)
Net realized gain (loss) from foreign currency related items 6 16
Net change in unrealized appreciation (depreciation) from investments 360,284 516,314
Net change in unrealized appreciation (depreciation) from foreign
currency related items (8) 5
----------- ----------
Net increase (decrease) in net assets resulting from operations 661,378 393,686
----------- ----------
FROM DIVIDENDS AND DISTRIBUTIONS:
Dividends from net investment income (17,725) (1,664)
Distributions from net realized gains 0 0
----------- ----------
Net decrease in net assets from dividends and distributions (17,725) (1,664)
----------- ----------
FROM CAPITAL SHARE TRANSACTIONS:
Proceeds from sale of shares 1,054,089 0
Reinvestment of dividends and distributions 1,718 471
Net asset value of shares redeemed (1,083,197) (321,988)
----------- ----------
Net increase (decrease) in net assets from capital share transactions (27,390) (321,517)
----------- ----------
Net increase (decrease) in net assets 616,263 70,505
NET ASSETS:
Beginning of period 1,250,657 1,180,152
----------- ----------
End of period $ 1,866,920 $1,250,657
=========== ==========
UNDISTRIBUTED NET INVESTMENT INCOME: $ 0 $ 17,721
=========== ==========
</TABLE>
See Accompanying Notes to Financial Statements.
26 & 27
<PAGE>
WARBURG PINCUS INSTITUTIONAL FUND, INC. -- VALUE PORTFOLIO
FINANCIAL HIGHLIGHTS
(For a Share of the Portfolio Outstanding Throughout Each Period)
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED FOR THE YEAR ENDED OCTOBER 31,
APRIL 30, 2000 -----------------------------------------------
(UNAUDITED) 1999 1998 1997(4)
-------------- ------- ------- -------
<S> <C> <C> <C> <C>
PER-SHARE DATA
Net asset value, beginning of period $13.32 $11.53 $10.64 $10.00
------ ------- ------- -------
INVESTMENT ACTIVITIES:
Net investment income 0.19 0.16 0.16 0.03
Net gains (losses) on investments and foreign currency
related items (both realized and unrealized) (0.35) 1.76 0.86 0.61
------ ------- ------- -------
Total from investment activities (0.16) 1.92 1.02 0.64
------ ------- ------- -------
LESS DIVIDENDS AND DISTRIBUTIONS:
Dividends from net investment income (0.22) (0.13) (0.08) 0.00
Distributions from net realized gains (2.64) 0.00 (0.05) 0.00
------ ------- ------- -------
Total dividends and distributions (2.86) (0.13) (0.13) 0.00
------ ------- ------- -------
Net asset value, end of period $10.30 $ 13.32 $ 11.53 $ 10.64
====== ======= ======= =======
Total return (1.22)%(3) 16.82% 9.76% 6.40%(3)
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period (000s omitted) $2,180 $36,332 $58,910 $15,565
Ratio of expenses to average net assets .77%(1)(2) .76%(2) .75%(2) .75%(1)(2)
Ratio of net income to average net assets 1.27%(1) 1.01% 1.27% 1.60%(1)
Decrease reflected in above operating expense ratios
due to waivers/reimbursements 1.10%(1) .39% .44% 1.67%(1)
Portfolio turnover rate 118.29% 79.06% 70.74% 34.81%
<FN>
--------------------------------------------------------------------------------
(1) Annualized.
(2) Interest earned on uninvested cash balances is used to offset portions of
the transfer agent expense. These arrangements resulted in a reduction to
the Portfolio's net expense ratio by .02% for the period ended April 30,
2000 and .01%, .00%, and .00% for the years ended October 31, 1999 and 1998
and the period ended October 31, 1997, respectively. The Portfolio's
operating expense ratio after reflecting these arrangements was .75% for the
period ended April 30, 2000 and .75% for each of the years ending October
31, 1999 and 1998 and the period ended October 31, 1997, respectively.
(3) Non annualized.
(4) For the period June 30, 1997 (commencement of operations) through October
31, 1997.
</FN>
</TABLE>
See Accompanying Notes to Financial Statements.
28
<PAGE>
WARBURG PINCUS INSTITUTIONAL FUND, INC. -- SMALL COMPANY VALUE PORTFOLIO
FINANCIAL HIGHLIGHTS
(For a Share of the Portfolio Outstanding Throughout Each Period)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE SIX FOR THE YEAR ENDED
MONTHS ENDED OCTOBER 31,
APRIL 30, 2000 -------------------------
(UNAUDITED) 1999 1998(4)
-------------- ------ -------
<S> <C> <C> <C>
PER-SHARE DATA
Net asset value, beginning of period $7.60 $ 7.98 $ 10.00
----- ------ -------
INVESTMENT ACTIVITIES:
Net investment income 0.69 0.01 0.03
Net losses on investments
(both realized and unrealized) (0.26) (0.31) (2.05)
----- ------ -------
Total from investment activities 0.43 (0.30) (2.02)
----- ------ -------
LESS DIVIDENDS:
Dividends from net investment income (0.34) (0.08) 0.00
----- ------ -------
Net asset value, end of period $7.69 $ 7.60 $ 7.98
===== ====== =======
Total return 5.66%(3) (3.85)% (20.20)%
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period (000s omitted) $ 661 $ 637 $ 1,784
----- ------ -------
Ratio of expenses to average net assets 1.02%(1)(2) .99%(2) .99%(2)
Ratio of net income (loss) to average net assets .48%(1) (.01)% .09%
Decrease reflected in above operating expense ratios
due to waivers/reimbursements 9.34%(1) 9.69% 1.65%
Portfolio turnover rate 76.10% 194.20% 248.40%
<FN>
--------------------------------------------------------------------------------
(1) Annualized.
(2) Interest earned on uninvested cash balances is used to offset portions of
the transfer agent expense. These arrangements resulted in a reduction to
the Portfolio's net expense ratio by .03% for the period ended April 30,
2000 and .00% for each of the years ended October 31, 1999 and 1998,
respectively. The Portfolio's operating expense ratio after reflecting these
arrangements was .99% for the period ended April 30, 2000 and .99% for each
of the years ended October 31, 1999 and 1998, respectively.
(3) Non annualized.
(4) For the period October 31, 1997 (commencement of operations) through October
31, 1998.
</FN>
</TABLE>
See Accompanying Notes to Financial Statements.
29
<PAGE>
WARBURG PINCUS INSTITUTIONAL FUND, INC. -- SMALL COMPANY GROWTH PORTFOLIO
FINANCIAL HIGHLIGHTS
(For a Share of the Portfolio 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(4)
-------------- -------- -------- -------- -------
<S> <C> <C> <C> <C> <C>
PER-SHARE DATA
Net asset value, beginning of period $ 17.89 $ 12.89 $ 15.89 $ 12.92 $ 10.00
-------- -------- -------- -------- -------
INVESTMENT ACTIVITIES:
Net investment loss (0.09) (0.12) (0.08) (0.05) (0.01)
Net gains (losses) on investments
and foreign currency related items
(both realized and unrealized) 7.59 5.12 (2.92) 3.02 2.93
-------- -------- -------- -------- -------
Total from investment activities 7.50 5.00 (3.00) 2.97 2.92
-------- -------- -------- -------- -------
LESS DISTRIBUTIONS:
Distributions from net realized gains (1.22) 0.00 0.00 0.00 0.00
-------- -------- -------- -------- -------
Net asset value, end of period $ 24.17 $ 17.89 $ 12.89 $ 15.89 $ 12.92
======== ======== ======== ======== =======
Total return 42.93%(3) 38.79% (18.88)% 22.99% 29.20%(3)
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period
(000s omitted) $307,928 $236,679 $194,164 $217,861 $96,827
Ratio of expenses to average
net assets 1.02%(1)(2) 1.00%(2) .99%(2) .99%(2) .99%(1)(2)
Ratio of net loss to average
net assets (.66)%(1) (.68)% (.54)% (.53)% (.18)%(1)
Decrease reflected in above operating
expense ratios due to waivers/
reimbursements .16%(1) .19% .18% .20% .69%(1)
Portfolio turnover rate 48.91% 107.56% 75.20% 91.59% 57.38%
<FN>
--------------------------------------------------------------------------------
(1) Annualized
(2) Interest earned on uninvested cash balances is used to offset portions of
the transfer agent expense. These arrangements resulted in a reduction to
the Portfolio's net expense ratio by .03% for the period ended April 30,
2000 and .01%, .00%, .00%, and .00% for the years ended October 31, 1999,
1998 and 1997 and the period ended October 31, 1996, respectively. The
Portfolio's operating expense ratio after reflecting these arrangements was
.99% for the period ended April 30, 2000 and .99% for each of the years
ending October 31, 1999, 1998 and 1997 and the period ended October 31,
1996, respectively.
(3) Non annualized
(4) For the period December 29, 1995 (commencement of operations) through
October 31, 1996.
</FN>
</TABLE>
See Accompanying Notes to Financial Statements.
30
<PAGE>
WARBURG PINCUS INSTITUTIONAL FUND, INC. -- POST-VENTURE CAPITAL PORTFOLIO
FINANCIAL HIGHLIGHTS
(For a Share of the Portfolio Outstanding Throughout Each Period)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE SIX FOR THE YEAR ENDED
MONTHS ENDED OCTOBER 31,
APRIL 30, 2000 ------------------
(UNAUDITED) 1999 1998(4)
-------------- ------ ------
<S> <C> <C> <C>
PER-SHARE DATA
Net asset value, beginning of period $11.28 $ 8.23 $10.00
------ ------ ------
INVESTMENT ACTIVITIES:
Net investment loss (0.09) (0.08) (0.09)
Net gains (losses) on investments and
foreign currency related items
(both realized and unrealized) 5.98 3.14 (1.68)
------ ------ ------
Total from investment activities 5.89 3.06 (1.77)
------ ------ ------
LESS DIVIDENDS:
Dividends from net investment income (0.16) (0.01) 0.00
------ ------ ------
Net asset value, end of period $17.01 $11.28 $ 8.23
====== ====== ======
Total return 52.48%(3) 37.25% (17.70)%
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period (000s omitted) $1,867 $1,251 $1,180
Ratio of expenses to average net assets 1.28%(1)(2) 1.25%(2) 1.25%(2)
Ratio of net loss to average net assets (.91)%(1) (.84)% (.76)%
Decrease reflected in above operating
expense ratios due to
waivers/reimbursements 3.32%(1) 7.09% 4.19%
Portfolio turnover rate 33.44% 93.67% 98.89%
--------------------------------------------------------------------------------
<FN>
(1) Annualized
(2) Interest earned on uninvested cash balances is used to offset portions of
the transfer agent expense. These arrangements resulted in a reduction to
the Portfolio's net expense ratio by .03% for the period ended April 30,
2000 and .00% for each of the years ended October 31, 1999 and 1998,
respectively. The Portfolio's operating expense ratio after reflecting these
arrangements was 1.25% for the period ended April 30, 2000 and 1.25% for
each of the years ended October 31, 1999 and 1998, respectively.
(3) Non annualized
(4) For the period October 31, 1997 (commencement of operations) through October
31, 1998.
</FN>
</TABLE>
See Accompanying Notes to Financial Statements.
31
<PAGE>
WARBURG PINCUS INSTITUTIONAL FUND, INC.
NOTES TO FINANCIAL STATEMENTS
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Warburg Pincus Institutional Fund, Inc. is an open-end management investment
company registered under the Investment Company Act of 1940, as amended, ("the
1940 Act"), incorporated under the laws of Maryland on May 13, 1992, and
currently offers seven managed investment Funds ("Portfolios") of which four are
contained in this report. The Value Portfolio ("Value"), the Small Company Value
Portfolio ("Small Company Value") and the Post-Venture Capital Portfolio
("Post-Venture Capital") are classified as diversified, and the Small Company
Growth Portfolio ("Small Company Growth") is non-diversified (each a "Portfolio"
and collectively, the "Portfolios").
Investment objectives for each Portfolio are as follows: Value seeks total
return; Small Company Value seeks long-term capital appreciation; Small Company
Growth seeks capital growth; and Post-Venture Capital seeks long-term growth of
capital.
The net asset value ("NAV") of each Portfolio is determined daily as of the
close of regular trading on the New York Stock Exchange. Each Portfolio'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 that will mature in 60 days or less is valued on the basis of
amortized cost, which approximates market value, unless the Board determines
that using this method would not reflect an investment's value.
Post-Venture Capital initially values its investments in private-equity
portfolios at cost. After that the Portfolio values these investments according
to reports from the private-equity portfolios that Abbott Capital Management,
LLC ("Abbott"), the Portfolio's sub-investment adviser, generally receives on a
quarterly basis. The Portfolio's NAV typically will not reflect interim changes
in the values of its private-equity-portfolio investments.
The books and records of the Portfolios 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 Portfolios do not isolate
32
<PAGE>
WARBURG PINCUS INSTITUTIONAL FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONT'D)
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES -- (CONT'D)
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 Portfolios 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 Portfolios 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 risk
(fluctuations in currency exchange rates), information risk (key information may
be inaccurate or unavailable) and political risk (expropriation, nationalization
or the imposition of capital or currency controls or punitive taxes). Other
risks of investing in foreign securities include liquidity and valuation risks.
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. The cost of investments sold is determined by use of the
specific identification method for both financial reporting and income tax
purposes.
Dividends from net investment income and distributions of net realized
capital gains, if any, are declared and paid at least annually. However, to the
extent that a net realized capital gain can be reduced by a capital loss
carryover, such gain will not be distributed. Income and capital gain
distributions are determined in accordance with federal income tax regulations
which may differ from generally accepted accounting principles.
No provision is made for federal taxes as it is the Fund's intention to have
each Portfolio continue to qualify for and elect the tax treatment applicable to
regulated investment companies under the Internal Revenue Code of 1986, as
amended (the "Code"), and make the requisite distributions to its shareholders
which will be sufficient to relieve it from federal income and excise taxes.
Pursuant to an exemptive order issued by the Securities and Exchange
Commission, each Portfolio, along with other Funds managed by Credit Suisse
Asset Management LLC ("CSAM") can transfer uninvested cash balances to a pooled
cash account, which is invested in repurchase agreements secured by U.S.
government securities. Securities pledged as collateral for repurchase
agreements are held by the Portfolios' 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, none of the
Portfolios had investments in repurchase agreements.
33
<PAGE>
WARBURG PINCUS INSTITUTIONAL FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONT'D)
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES -- (CONT'D)
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 statement and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from these estimates.
The Portfolios have an arrangement with their transfer agent whereby interest
earned on uninvested cash balances was used to offset a portion of their
transfer agent expense. For the six months ended April 30, 2000, the Portfolios
received credits or reimbursements under this arrangement as follows:
PORTFOLIO AMOUNT
-------- --------
Value $ 977
Small Company Value 92
Small Company Growth 47,431
Post-Venture Capital 261
2. INVESTMENT ADVISER, CO-ADMINISTRATORS AND DISTRIBUTOR
CSAM, which is an indirect wholly-owned U.S. subsidiary of Credit Suisse
Group, serves as each Portfolio's investment adviser. For its investment
advisory services, CSAM receives the following fees based on each Portfolio's
average daily net assets:
PORTFOLIO ANNUAL RATE
--------- ----------------------------------
Value .75% of average daily net assets
Small Company Value .90% of average daily net assets
Small Company Growth .90% of average daily net assets
Post-Venture Capital 1.10% of average daily net assets
For the six months ended April 30, 2000, investment advisory fees, voluntary
waivers and reimbursements were as follows:
GROSS NET EXPENSE
PORTFOLIO ADVISORY FEE WAIVER ADVISORY FEE REIMBURSEMENTS
--------- ------------ --------- ------------ --------------
Value $38,686 $(38,686) $0 $(12,730)
Small Company Value 2,807 (2,807) 0 (26,019)
Small Company Growth 1,470,622 (258,920) 1,211,702 0
Post-Venture Capital 9,754 (9,754) 0 (18,802)
Abbott serves as sub-investment adviser for the Post-Venture Capital
Portfolio's assets invested in U.S. or foreign private limited partnerships or
other investment funds ("Private Fund Investments"). From its investment
advisory fee, CSAM pays Abbott a quarterly fee at the annual rate of 1.00% of
the value of the Portfolio's Private Fund Investments as of the end of each
calendar quarter. No compensation is paid by the Post-Venture Capital Portfolio
to Abbott for its sub-investment advisory services.
34
<PAGE>
WARBURG PINCUS INSTITUTIONAL FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONT'D)
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
2. INVESTMENT ADVISER, CO-ADMINISTRATORS AND DISTRIBUTOR -- (CONT'D)
Credit Suisse Asset Management Securities, Inc. ("CSAMSI"), a wholly-owned
subsidiary of CSAM, and PFPC Inc. ("PFPC"), an indirect subsidiary of PNC
Financial Services Group, Inc. ("PNC"), serve as each Portfolio's
co-administrators. CSAMSI became the co-administrator of the Portfolios on
November 1, 1999. Prior to that, Counsellors Funds Service, Inc. ("CFSI") served
as co-administrator to the Portfolios. For its administrative services, CSAMSI
receives a fee calculated at an annual rate of .10% of each Portfolio's average
daily net assets. For the six months ended April 30, 2000, administrative
services fees earned by CSAMSI were as follows:
PORTFOLIO CO-ADMINISTRATION FEE
--------- ---------------------
Value $ 5,158
Small Company Value 312
Small Company Growth 163,403
Post-Venture Capital 887
For its administrative services, PFPC currently receives a fee, exclusive of
out-of-pocket expenses, based on the following fee structure
AVERAGE DAILY NET ASSETS ANNUAL RATE
------------------------ -----------
First $500 million .10% of average daily net assets
Next $1 billion .075% of average daily net assets
Over $1.5 billion .05% of average daily net assets
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>
GROSS NET
PORTFOLIO CO-ADMINISTRATION FEE WAIVER CO-ADMINISTRATION FEE
--------- --------------------- ------- ---------------------
<S> <C> <C> <C>
Value $ 7,049 $(5,158) $ 1,891
Small Company Value 1,678 (312) 1,366
Small Company Growth 165,389 0 165,389
Post-Venture Capital 2,200 (887) 1,313
</TABLE>
Provident Distributors, Inc. serves as distributor of each Portfolio's shares
without compensation.
3. LINE OF CREDIT
The Portfolios, 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 and
certain other lenders, for temporary or emergency purposes primarily relating to
unanticipated Portfolio share redemptions. Under the
35
<PAGE>
WARBURG PINCUS INSTITUTIONAL FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONT'D)
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
3. LINE OF CREDIT -- (CONT'D)
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 borrowings at the Federal funds rate
plus .50%. At April 30, 2000, there were no loans outstanding for any of the
Portfolios. During the six months ended April 30, 2000, borrowings under the
Credit Facility were as follows:
AVERAGE DAILY AVERAGE MAXIMUM DAILY
PORTFOLIO LOAN BALANCE INTEREST RATE % LOAN OUTSTANDING
-------- -------------- --------------- ----------------
Value $29,926 5.975% $1,770,000
Small Company Value 699 6.361% 36,000
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:
PORTFOLIO PURCHASES SALES
-------- ------------ ------------
Value $ 11,856,278 $ 42,063,281
Small Company Value 450,947 480,311
Small Company Growth 148,867,860 194,749,341
Post-Venture Capital 561,462 597,799
At April 30, 2000, the net unrealized appreciation from investments for those
securities having an excess of value over cost and net depreciation from
investments for those securities having an excess of cost over value (based on
cost for federal income tax purposes) was as follows:
NET UNREALIZED
UNREALIZED UNREALIZED APPRECIATION
PORTFOLIO APPRECIATION DEPRECIATION (DEPRECIATION)
-------- ------------ ------------ --------------
Value $ 161,191 $ (91,974) $ 69,217
Small Company Value 88,088 (66,627) 21,461
Small Company Growth 105,119,336 (38,439,971) 66,679,365
Post-Venture Capital 774,614 (58,626) 715,988
36
<PAGE>
WARBURG PINCUS INSTITUTIONAL FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONT'D)
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
5. RESTRICTED SECURITIES
Certain Small Company Growth investments are restricted as to resale and are
valued as determined by or under the direction of the Board in good faith, at
fair value. The table below shows the acquisition dates, aggregate cost, fair
value as of April 30, 2000 and percent of net assets which the securities
represent.
<TABLE>
<CAPTION>
PERCENTAGE
SECURITY SECURITY ACQUISITION MARKET OF NET
PORTFOLIO DESCRIPTION TYPE DATE(S) COST VALUE ASSETS
--------- ----------- ---- ------- ---- ----- ------
<S> <C> <C> <C> <C> <C> <C>
Small Company Growth Prescient Systems, Inc. Common 02/23/98 $2,000,000 $ 1,999,998 0.65%
</TABLE>
6. CAPITAL SHARE TRANSACTIONS
The Fund is authorized to issue up to thirteen billion full and fractional
shares of common stock of separate series having a $.001 par value per share.
Shares of seven series have been classified, four of which constitute the
interests in the Portfolios.
Transactions in shares of each Portfolio were as follows:
<TABLE>
<CAPTION>
VALUE SMALL COMPANY VALUE
--------------------------------- -------------------------------
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>
Shares sold 29,608 739,899 22,352 51,791
Shares issued to shareholders
on reinvestment of dividends
and distributions 573,740 57,158 3,684 1,948
Shares redeemed (3,119,808) (3,179,428) (23,962) (193,379)
---------- ---------- ------- --------
Net increase (decrease) in shares
outstanding (2,516,460) (2,382,371) 2,074 (139,640)
========== ========== ======= ========
SMALL COMPANY GROWTH 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
------------- ---------------- -------------- ----------------
Shares sold 835,864 2,255,112 72,008 0
Shares issued to shareholders on
reinvestment of dividends and
distributions 691,094 0 120 55
Shares redeemed (2,016,065) (4,095,159) (73,242) (32,651)
---------- ---------- ------- -------
Net decrease in shares
outstanding (489,107) (1,840,047) (1,114) (32,596)
========== ========== ======= ========
</TABLE>
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WARBURG PINCUS INSTITUTIONAL FUND, INC.
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 distributions have been adjusted for current period permanent
book/tax differences. Value and Post-Venture Capital reclassified ($1,097) and
$6 from accumulated net realized gain/(loss) from foreign currency related items
to undistributed net investment income. Small Company Growth and Post-Venture
Capital reclassified ($1,082,995) and ($8,071), respectively, from accumulated
net investment income to capital contributions.
8. CAPITAL LOSS CARRYOVER
At April 30, 2000, capital loss carryovers available to offset possible
future gains of each Portfolio were as follows:
CAPITAL LOSS
CARRYOVER EXPIRING IN
----------------------- TOTAL CAPITAL
2006 2007 LOSS CARRYOVER
-------- -------- --------------
Small Company Value $367,783 $187,598 $555,381
Post-Venture Capital 98,472 119,909 218,381
9. PORTFOLIO NAME CHANGE
At the Board Meeting on May 1, 2000, the Board of Directors voted to rename
the Warburg, Pincus Institutional Fund, Inc. As of May 11, 2000 the Fund ceased
to be named the Warburg, Pincus Institutional Fund, Inc. and is now named the
Credit Suisse Institutional Fund, Inc.
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[GRAPHICS OMITTED]
WARBURG PINCUS FUNDS
PART OF CREDIT SUISSE ASSET MANAGEMENT
P.O. BOX 9030, BOSTON, MA 02205-9030
800-222-8977 [BULLET] www.warburg.com
PROVIDENT DISTRIBUTORS, INC., DISTRIBUTOR. WPINU-3-0400
