[GRAPHICS OMITTED]
WARBURG PINCUS FUNDS PART OF CREDIT ASSET
SUISSE MANAGEMENT
SEMIANNUAL
REPORT
APRIL 30, 2000
(UNAUDITED)
WARBURG PINCUS INSTITUTIONAL FUND, INC.
(BULLET) INTERNATIONAL EQUITY PORTFOLIO
(BULLET) EMERGING MARKETS PORTFOLIO
(BULLET) JAPAN GROWTH 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, LLC. 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.
INTERNATIONAL INVESTING ENTAILS SPECIAL RISK CONSIDERATIONS, INCLUDING CURRENCY
FLUCTUATIONS, LOWER LIQUIDITY, ECONOMIC AND POLITICAL RISKS, AND DIFFERENCES IN
ACCOUNTING METHODS.
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, LLC ("CSAM") OR ANY AFFILIATE, ARE NOT FDIC INSURED AND ARE NOT
GUARANTEED BY CSAM OR ANY AFFILIATE. FUND INVESTMENTS ARE SUBJECT TO INVESTMENT
RISKS, INCLUDING LOSS OF YOUR INVESTMENT.
<PAGE>
WARBURG PINCUS INSTITUTIONAL FUND -- INTERNATIONAL EQUITY 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--International Equity Portfolio had a return of 16.94%, vs. a gain of 8.66%
for the Morgan Stanley Capital International All Country World Excluding the
U.S. Index.* The Portfolio's one-year return through April 30, 2000 was 41.13%.
Its five-year and since-inception (on September 1, 1992) average annual total
returns through April 30, 2000 were 13.12% and 14.47%, 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 Portfolio had a good showing for the six months, both in absolute terms
and compared to that of its benchmark. The Portfolio benefited from good
performances from a number of its holdings, especially its technology and
telecommunications names. Also contributing positively to the Portfolio'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 Portfolio 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
1
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WARBURG PINCUS INSTITUTIONAL FUND -- INTERNATIONAL EQUITY PORTFOLIO
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 and 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 the 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. THESE ARE DETAILED IN THE PORTFOLIO'S
PROSPECTUS, WHICH SHOULD BE READ CAREFULLY BEFORE INVESTING.
--------------
* The Morgan Stanley Capital International 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 INSTITUTIONAL FUND -- EMERGING MARKETS 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--Emerging Markets Portfolio had a return of 26.03%, vs. a return of 13.87%
for the Morgan Stanley Capital International Emerging Markets Free Index.* The
Portfolio's's one-year return through April 30, 2000 was 53.57%. Its
since-inception (on September 30, 1996) average annual returns through April 30,
2000 was 3.49%.
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, also advanced. 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, reflecting contagion from a
downturn in the Nasdaq, the technology-biased U.S. index.
Against this backdrop, the Portfolio had a good showing, both in absolute
terms and compared to that of its benchmark. The Portfolio saw good performances
from a number of its holdings, especially its technology and communications
stocks. In terms of regional attribution, factors that aided the Portfolio
included its overweighting in Turkey, the best-performing emerging stock market
for the six months.
We made a few noteworthy changes to the Portfolio'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.
3
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WARBURG PINCUS INSTITUTIONAL FUND -- EMERGING MARKETS PORTFOLIO
SEMIANNUAL INVESTMENT ADVISER'S REPORT -- APRIL 30, 2000 (CONT'D)
--------------------------------------------------------------------------------
Within Eastern/Central Europe, we maintained an overweighting in Turkey,
reflecting our optimism over the country's ongoing IMF-sanctioned 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 riskier asset classes in general.
In addition, certain emerging markets remain vulnerable to global 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. THESE ARE DETAILED IN THE PORTFOLIO'S PROSPECTUS,
WHICH SHOULD BE READ CAREFULLY BEFORE INVESTING.
--------------
* The Morgan Stanley Emerging Capital International 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 INSTITUTIONAL FUND -- JAPAN 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--Japan Growth Portfolio had a gain of 2.74%, vs. a gain of 3.21% for the
U.S.-dollar-denominated Tokyo Stock Exchange Index ("Topix").* The Portfolio's
one-year return through April 30, 2000 was 87.38%. Its since-inception (on
October 31, 1997) average annual total return through April 30, 2000 was 53.12%.
The modest gain made by Japan's broad stock market for the six months belied
a period of considerable volatility. These stocks initially surged, building on
their gains earlier in 1999, but were increasingly buffeted by profit-taking as
2000 progressed (indeed, for the first time in years, there were ample profits
to be taken). Certain Internet-related "new economy" names came under
particularly heavy selling pressure, reflecting concerns over valuations on
these stocks amid an environment for the technology area globally.
Against this backdrop, the Portfolio had a gain, but was hampered by the
late-period downturn in Japan's equity market and by particular turbulence among
rapid-growth companies, which remained well-represented in the Portfolio. Recent
weakness in these stocks notwithstanding, we believe that a number of
aggressive-growth Japanese companies have solid long-term prospects, and certain
technology and communications stocks will continue to figure prominently in the
Portfolio.
We made no material changes to the Portfolio during the period in terms of
basic strategy. We continued to look for companies with the potential to benefit
from strong existing business franchises, the adoption of new technologies and
ongoing reform (e.g., with respect to capital markets) within Japan. In terms of
industry emphasis, we generally saw the most compelling stocks within the
communications, semiconductor-equipment, electronic-components and
financial-services areas, which continued to account for the bulk of the
Portfolio's investments.
We maintain a positive view on the long-term prospects for Japan as an asset
class, notwithstanding the short-term volatility that the market will
undoubtedly display going forward. Our optimism is founded on several factors,
not the least of which is the potential for positive surprises regarding the
world's second-largest economy. Based on our contact with company
managements--we visit hundreds of Japanese companies yearly--and on a rash of
empirical data (e.g., recent upturns in sales, profits and capital spending) we
believe that Japan's recovery remains intact, which stands to support profits
while easing risk concerns over time.
5
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WARBURG PINCUS INSTITUTIONAL FUND -- JAPAN GROWTH PORTFOLIO
SEMIANNUAL INVESTMENT ADVISER'S REPORT -- APRIL 30, 2000 (CONT'D)
--------------------------------------------------------------------------------
One particularly encouraging trend regarding Japan's economy is a significant
upturn in corporate Japan's commitment to information technology. This could
have a materially positive impact on productivity and the economy going forward,
given the supportive role IT has played in the U.S. economy over the past
decade.
Other positive agents for change in a Japan striving to right itself is the
steady expansion of equity investing. This includes a surge in direct foreign
investment (which more than tripled in 1999) and the rise of venture-capital
activity in Japan, trends buttressed by ongoing deregulation and by
opportunities afforded by merger and acquisition activity.
There remain, of course, concerns, such as Japan's high debt burden. But we
believe that the country has good potential to chip away its debt over time,
aided by higher tax revenues as the economy warms and by the continued expansion
of equity financing (which can favorably "crowd out" debt).
All told, we believe that Japan has much to offer investors seeking
diversification away from the U.S., and who are willing to assume short-term
risk (e.g., the risk of heightened volatility) in pursuit of long-term gains. As
ever, we will continue to strive to add value to our portfolios via individual
stock selection. Notwithstanding recent performance, we are encouraged by our
efforts in that regard to date, and our efforts will remain concentrated on
identifying stocks we deem to have the best long-term appreciation potential.
P. Nicholas Edwards Todd Jacobson
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. THERE ARE ALSO RISKS ASSOCIATED WITH
INVESTING IN JAPAN, INCLUDING THE RISK OF INVESTING IN A SINGLE-COUNTRY FUND.
THESE ARE DETAILED IN THE PORTFOLIO'S PROSPECTUS, WHICH SHOULD BE READ CAREFULLY
BEFORE INVESTING.
--------------
* The Topix is an unmanaged capitalization-weighted index (with no defined
investment objective) designed to reflect the general movement of the
Japanese stock market. The index consists of all shares listed on the First
Section of the Tokyo Stock Exchange, which is generally reserved for Japan's
larger companies.
6
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WARBURG PINCUS INSTITUTIONAL FUND, INC. -- INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS--APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
------ -----
COMMON STOCKS (86.7%)
CANADA (6.7%)
COMMUNICATIONS EQUIPMENT (0.4%)
Research in Motion, Ltd. + 43,800 $ 1,859,414
-----------
DIVERSIFIED TELECOMMUNICATION SERVICES (0.4%)
OCI Communications, Inc. + 150,000 1,629,929
-----------
MEDIA (1.3%)
Rogers Communications, Inc. Class B + 222,300 5,783,827
-----------
OIL & GAS (3.0%)
Anderson Exploration, Ltd. + 186,300 2,979,975
Berkley Petroleum Corp. + 249,600 1,726,712
Canadian Hunter Exploration, Ltd. + 92,600 1,753,054
Canadian Natural Resources, Ltd. + 182,000 4,851,990
Precision Drilling Corp. + 43,900 1,395,523
-----------
12,707,254
-----------
SOFTWARE (1.6%)
Descartes Systems Group, Inc. + 202,700 6,970,266
-----------
TOTAL CANADA 28,950,690
-----------
CHINA (1.0%)
WIRELESS TELECOMMUNICATION SERVICES (1.0%)
China Telecom, Ltd. + 560,000 4,044,175
-----------
TOTAL CHINA 4,044,175
-----------
DENMARK (0.8%)
DIVERSIFIED TELECOMMUNICATION SERVICES (0.8%)
Tele Danmark AS Class B 46,300 3,395,573
-----------
TOTAL DENMARK 3,395,573
-----------
FINLAND (2.0%)
COMMUNICATIONS EQUIPMENT (1.8%)
Nokia Oyj 137,600 7,912,009
-----------
IT CONSULTING & SERVICES (0.2%)
Stonesoft Oyj + 47,300 883,597
-----------
TOTAL FINLAND 8,795,606
-----------
FRANCE (8.8%)
BANKS (0.6%)
Banque Nationale de Paris 29,250 2,369,554
-----------
CONSTRUCTION & ENGINEERING (1.5%)
Compagnie Generale des Eaux 163,300 6,398,728
-----------
ELECTRICAL EQUIPMENT (0.7%)
Alstom SA 127,100 3,174,633
-----------
See Accompanying Notes to Financial Statements.
7
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WARBURG PINCUS INSTITUTIONAL FUND, INC. -- INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (CONT'D)--APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
------ -----
FRANCE (cont'd)
ENERGY EQUIPMENT & SERVICES (0.4%)
Coflexip SA 8,500 $ 828,785
Coflexip SA ADR 16,500 837,375
-----------
1,666,160
-----------
MEDIA (1.4%)
Lagardere Groupe SCA 79,300 5,383,546
Publicis SA 1,600 778,575
-----------
6,162,121
-----------
METALS & MINING (1.2%)
Pechiney SA Class A 119,000 5,226,765
-----------
MULTI-UTILITIES (1.5%)
Vivendi 63,500 6,295,665
-----------
OIL & GAS (1.5%)
Total SA Class B 43,074 6,551,044
-----------
TOTAL FRANCE 37,844,670
-----------
GERMANY (4.2%)
ELECTRIC UTILITIES (0.8%)
Viag AG 181,500 3,506,320
-----------
INDUSTRIAL CONGLOMERATES (2.9%)
Siemens AG 83,800 12,393,716
-----------
INSURANCE (0.5%)
Hannover Rueckversicherungs AG 33,900 2,162,403
-----------
TOTAL GERMANY 18,062,439
-----------
HONG KONG (0.3%)
WIRELESS TELECOMMUNICATION SERVICES (0.3%)
SmarTone Telecommunications 443,622 1,389,704
-----------
TOTAL HONG KONG 1,389,704
-----------
HUNGARY (1.3%)
BANKS (0.8%)
OTP Bank 75,400 3,348,237
-----------
DIVERSIFIED TELECOMMUNICATION SERVICES (0.5%)
Magyar Tavkozlesi 325,400 2,233,102
-----------
TOTAL HUNGARY 5,581,339
-----------
INDIA (1.3%)
BANKS (0.0%)
State Bank of India, Ltd. 1,300 6,199
-----------
CHEMICALS (0.0%)
Reliance Industries, Ltd. 11,097 88,179
-----------
See Accompanying Notes to Financial Statements.
8
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WARBURG PINCUS INSTITUTIONAL FUND, INC. -- INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (CONT'D)--APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
------ -----
INDIA (cont'd)
DIVERSIFIED TELECOMMUNICATION SERVICES (0.0%)
Mahanagar Telephone Nigam, Ltd. 200 $ 1,031
-----------
IT CONSULTING & SERVICES (0.7%)
NIIT, Ltd. 61,500 2,873,824
-----------
METALS & MINING (0.0%)
Hindalco Industries, Ltd. 100 1,615
-----------
OIL & GAS (0.0%)
Bharat Petroleum Corp., Ltd. 100 400
-----------
SOFTWARE (0.6%)
Aptech, Ltd. 66,200 2,759,842
-----------
TOTAL INDIA 5,731,090
-----------
IRELAND (0.4%)
BANKS (0.4%)
Bank of Ireland 225,916 1,527,531
-----------
TOTAL IRELAND 1,527,531
-----------
ITALY (5.4%)
DIVERSIFIED TELECOMMUNICATION SERVICES (2.9%)
Olivetti SpA 1,000,000 3,316,961
Telecom Italia SpA 642,100 8,999,078
-----------
12,316,039
-----------
MEDIA (1.8%)
Seat Pagine Gialle SpA 1,742,739 7,670,408
-----------
TRANSPORTATION INFRASTRUCTURE (0.7%)
Concessioni e Costruzioni Autostrade SpA 500,000 3,376,193
-----------
TOTAL ITALY 23,362,640
-----------
JAPAN (21.7%)
CHEMICALS (0.6%)
Asahi Chemical Industry Co., Ltd. 408,000 2,348,222
-----------
DIVERSIFIED FINANCIALS (4.2%)
Daiwa Securities Co., Ltd. 288,000 4,397,086
Nikko Securities Co., Ltd. 338,000 3,987,635
Nomura Securities Co., Ltd. 146,000 3,674,602
Orix Corp. 25,200 3,595,617
Shinko Securities Co. 574,000 2,512,243
-----------
18,167,183
-----------
DIVERSIFIED TELECOMMUNICATION SERVICES (2.6%)
DDI Corp. 300 3,442,163
Japan Telecom Co., Ltd. 40 2,035,688
KDD Corp. 47,900 5,549,174
-----------
11,027,025
-----------
See Accompanying Notes to Financial Statements.
9
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WARBURG PINCUS INSTITUTIONAL FUND, INC. -- INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (CONT'D)--APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
------ -----
JAPAN (cont'd)
ELECTRICAL EQUIPMENT (1.8%)
Furukawa Electric Co., Ltd. 542,000 $ 7,517,777
-----------
HEALTH CARE EQUIPMENT & SUPPLIES (1.7%)
Hoya Corp. 69,000 7,023,124
-----------
HOUSEHOLD DURABLES (2.6%)
Sharp Corp. 352,000 6,791,055
Sony Corp. 39,200 4,501,387
-----------
11,292,442
-----------
INTERNET SOFTWARE & SERVICES (1.7%)
Softbank Corp. 10,100 2,485,945
Softbank Corp. New + 20,200 4,990,582
-----------
7,476,527
-----------
SEMICONDUCTOR EQUIPMENT & PRODUCTS (4.4%)
Rohm Co., Ltd. 18,800 6,297,308
Tokyo Electron, Ltd. 46,000 7,495,588
Tokyo Seimitsu Co., Ltd. 50,000 5,228,017
-----------
19,020,913
-----------
WIRELESS TELECOMMUNICATION SERVICES (2.1%)
NTT DoCoMo, Inc. 275 9,186,042
-----------
TOTAL JAPAN 93,059,255
-----------
MEXICO (0.4%)
BANKS (0.4%)
Grupo Financiero Banamex Accival SA de CV + 410,000 1,480,896
-----------
TOTAL MEXICO 1,480,896
-----------
NETHERLANDS (1.9%)
DIVERSIFIED TELECOMMUNICATION SERVICES (0.1%)
Completel Europe NV + 38,000 668,313
-----------
MACHINERY (0.9%)
IHC Caland NV 90,500 3,669,844
-----------
MEDIA (0.9%)
Verenigde Nederlandse Uitgeversbedrijven Verenigd Bezit 70,000 3,753,907
-----------
TOTAL NETHERLANDS 8,092,064
-----------
PORTUGAL (1.9%)
DIVERSIFIED TELECOMMUNICATION SERVICES (1.9%)
Portugal Telecom SA 700,500 7,832,343
-----------
TOTAL PORTUGAL 7,832,343
-----------
SINGAPORE (2.2%)
BANKS (0.8%)
Overseas Union Bank, Ltd. 706,872 3,229,163
-----------
See Accompanying Notes to Financial Statements.
10
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WARBURG PINCUS INSTITUTIONAL FUND, INC. -- INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (CONT'D)--APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
------ -----
SINGAPORE (cont'd)
COMPUTERS & PERIPHERALS (0.5%)
National Steel Electronics Co. 399,000 $ 2,290,095
-----------
ELECTRONIC EQUIPMENT & INSTRUMENTS (0.3%)
Venture Manufacturing, Ltd. 112,000 1,311,906
-----------
MARINE (0.6%)
Neptune Orient Lines, Ltd. + 2,944,000 2,638,055
-----------
TOTAL SINGAPORE 9,469,219
-----------
SOUTH KOREA (4.6%)
BANKS (0.4%)
Shinhan Bank 203,260 1,950,699
-----------
HOUSEHOLD DURABLES (0.1%)
Telson Electronics Co., Ltd. 45,000 644,760
-----------
INTERNET SOFTWARE & SERVICES (0.0%)
Daum Communications Corp. + 4,000 189,238
-----------
MEDIA (0.6%)
Cheil Communications, Inc. 23,000 2,414,585
-----------
SEMICONDUCTOR EQUIPMENT & PRODUCTS (2.1%)
Samsung Electronics Co., Ltd. 32,700 8,840,111
-----------
WIRELESS TELECOMMUNICATION SERVICES (1.4%)
SK Telecom Co., Ltd. 220,000 5,848,351
-----------
TOTAL SOUTH KOREA 19,887,744
-----------
SPAIN (1.7%)
BANKS (1.1%)
Banco Bilbao Vizcaya SA 345,000 4,715,735
-----------
FOOD & DRUG RETAILING (0.6%)
Centros Comerciales Continente SA 89,580 1,395,874
Centros Comerciales Pryca SA 114,270 1,385,955
-----------
2,781,829
-----------
TOTAL SPAIN 7,497,564
-----------
SWEDEN (4.3%)
BANKS (1.2%)
Nordbanken Holding AB 796,200 5,024,769
-----------
COMMUNICATIONS EQUIPMENT (1.6%)
Telefonaktiebolaget LM Ericsson ADR 79,200 7,004,250
-----------
CONTAINERS & PACKAGING (0.5%)
Assidoman AB 139,500 2,306,117
-----------
MACHINERY (1.0%)
SKF AB Series B 195,100 4,184,119
-----------
TOTAL SWEDEN 18,519,255
-----------
See Accompanying Notes to Financial Statements.
11
<PAGE>
WARBURG PINCUS INSTITUTIONAL FUND, INC. -- INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (CONT'D)--APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
------ -----
SWITZERLAND (0.6%)
PHARMACEUTICALS (0.6%)
Roche Holding AG + 227 $ 2,376,238
-----------
TOTAL SWITZERLAND 2,376,238
-----------
TAIWAN (2.8%)
ELECTRICAL EQUIPMENT (0.7%)
Siliconware Corp. + 1,775,000 3,014,412
-----------
SEMICONDUCTOR EQUIPMENT & PRODUCTS (2.1%)
Taiwan Semiconductor Manufacturing Co. + 1,030,300 6,628,738
United Microelectronics Co., Ltd. + 750,000 2,535,143
-----------
9,163,881
-----------
TOTAL TAIWAN 12,178,293
-----------
TURKEY (0.6%)
BANKS (0.6%)
Yapi Ve Kredi Bankasi AS 86,252,000 2,753,667
-----------
TOTAL TURKEY 2,753,667
-----------
UNITED KINGDOM (11.8%)
AEROSPACE & DEFENSE (1.3%)
British Aerospace PLC 886,621 5,466,298
-----------
BANKS (1.5%)
Bank of Scotland 730,000 6,505,421
-----------
DIVERSIFIED TELECOMMUNICATION SERVICES (1.6%)
British Telecommunications PLC 376,728 6,785,191
-----------
INSURANCE (1.0%)
Prudential Corp. PLC 281,640 4,345,403
-----------
MEDIA (0.9%)
Reed International PLC 570,400 3,967,438
-----------
METALS & MINING (0.0%)
Corus Group PLC 100,000 134,573
-----------
OIL & GAS (1.2%)
BP Amoco Plc 583,100 5,059,451
-----------
PHARMACEUTICALS (2.2%)
Astrazeneca Group PLC 118,300 4,977,765
Smithkline Beecham PLC 327,000 4,495,193
-----------
9,472,958
-----------
WIRELESS TELECOMMUNICATION SERVICES (2.1%)
Vodafone Group PLC 1,980,300 9,125,888
-----------
TOTAL UNITED KINGDOM 50,862,621
-----------
TOTAL COMMON STOCKS (Cost $302,194,336) 372,694,616
-----------
See Accompanying Notes to Financial Statements.
12
<PAGE>
WARBURG PINCUS INSTITUTIONAL FUND, INC. -- INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (CONT'D)--APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
------ -----
PREFERRED STOCKS (1.2%)
GERMANY (1.2%)
HEALTH CARE PROVIDERS & SERVICERS (0.6%)
Fresenius Medical Care AG ADR 158,700 $ 2,340,825
------------
INSURANCE (0.6%)
Marschollek, Lautenschlaeger und Partner AG 5,000 2,651,746
------------
TOTAL GERMANY 4,992,571
------------
TOTAL PREFERRED STOCKS (Cost $3,732,540) 4,992,571
------------
WARRANTS (1.2%)
CANADA (1.2%)
DIVERSIFIED TELECOMMUNICATION SERVICES (0.9%)
OCI Communications, Inc.+ 340,000 3,694,505
------------
INTERNET SOFTWARE & SERVICES (0.3%)
Wysdom (Private Placement)+ 119,500 1,362,300
------------
TOTAL CANADA 5,056,805
------------
TOTAL WARRANTS (Cost $5,560,580) 5,056,805
------------
SHORT TERM INVESTMENTS (7.1%)
Institutional Money Market Trust 10,081,974 10,081,974
RBB Money Market Portfolio 20,360,999 20,360,999
------------
TOTAL SHORT TERM INVESTMENTS (Cost $30,442,973) 30,442,973
------------
TOTAL INVESTMENTS AT VALUE (96.2%) (Cost $341,930,429*) 413,186,965
OTHER ASSETS IN EXCESS OF LIABILITIES (3.8%) 16,607,523
------------
NET ASSETS (100.0%) $429,794,488
============
INVESTMENT ABBREVIATIONS
ADR = American Depository Receipt
--------------------------------------------------------------------------------
+ Non-income producing security.
* Cost for federal income tax purposes is $342,171,936.
See Accompanying Notes to Financial Statements.
13
<PAGE>
WARBURG PINCUS INSTITUTIONAL FUND, INC. -- EMERGING MARKETS PORTFOLIO
SCHEDULE OF INVESTMENTS (CONT'D)--APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
COOMON STOCKS (83.3%) ------ -----
AUSTRALIA (0.0%)
OIL & GAS (0.0%)
Novus Petroleum, Ltd. + 11 $ 9
-----------
TOTAL AUSTRALIA 9
-----------
BRAZIL (9.9%)
BANKS (1.4%)
Banco Itau SA 118,000 8,828
Uniao de Bancos Brasileiros SA GDR 500 12,469
-----------
21,297
-----------
BEVERAGES (0.8%)
Companhia Cervejaria Brahma ADR 800 12,400
-----------
DIVERSIFIED TELECOMMUNICATION SERVICES (4.5%)
Embratel Participacoes SA ADR 960 21,600
Tele Centro Sul Participacoes SA ADR 200 12,750
Tele Norte Leste Participacoes SA ADR 1,239 22,070
Telecommunications de Sao Paulo SA ADR 400 10,100
-----------
66,520
-----------
FOREST PRODUCTS AND PAPER (0.8%)
Aracruz Celulose ADR 600 11,212
-----------
FOOD & DRUG RETAILING (1.0%)
Companhia Brasileira de Distribuicao 500 14,250
Grupo Pao de Acucar ADR
-----------
METALS & MINING (1.4%)
Companhia Vale do Rio Doce Class A 852 21,106
-----------
TOTAL BRAZIL 146,785
-----------
CHILE (1.9%)
DIVERSIFIED TELECOMMUNICATION SERVICES (1.4%)
Cia de Telecomunicaciones de Chile SA ADR 1,100 20,350
-----------
UTILITIES-ELECTRICAL & GAS (0.5%)
Enersis SA ADR 400 7,450
-----------
TOTAL CHILE 27,800
-----------
GREECE (0.9%)
BANKS (0.5%)
Alpha Credit Bank SA 130 7,226
-----------
DIVERSIFIED TELECOMMUNICATION SERVICES (0.4%)
Hellenic Telecommunication Organization SA ADR 580 6,779
-----------
TOTAL GREECE 14,005
-----------
See Accompanying Notes to Financial Statements.
14
<PAGE>
WARBURG PINCUS INSTITUTIONAL FUND, INC. -- EMERGING MARKETS PORTFOLIO
SCHEDULE OF INVESTMENTS (CONT'D)--APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
------ -----
HONG KONG (7.5%)
CHEMICALS (1.5%)
Yizheng Chemical Fibre Co., Ltd. + 112,000 $ 21,713
-----------
COMPUTERS & PERIPHERALS (1.9%)
Legend Holdings, Ltd. 24,000 27,886
-----------
INTERNET SOFTWARE & SERVICES (0.2%)
Pacific Century Cyberworks, Ltd. + 2,000 3,723
-----------
WIRELESS TELECOMMUNICATION SERVICES (3.9%)
China Telecom, Ltd. + 8,000 57,774
-----------
TOTAL HONG KONG 111,096
-----------
HUNGARY (1.1%)
BANKING (0.3%)
OTP Bank 85 3,775
-----------
DIVERSIFIED TELECOMMUNICATION SERVICES (0.4%)
Matav RT ADR 200 6,962
-----------
PHARMACEUTICALS (0.4%)
Gedeon Richter GDR 100 5,550
-----------
TOTAL HUNGARY 16,287
-----------
INDIA (5.9%)
CONSULTING & SERVICES (1.8%)
Aptech, Ltd. 654 27,265
-----------
DIVERSIFIED FINANCIALS (2.0%)
Icici, Ltd. 1,170 29,689
-----------
DIVERSIFIED TELECOMMUNICATION SERVICES (0.5%)
Videsh Sanchar Nigam, Ltd. 400 7,600
-----------
INTERNET SOFTWARE & SERVICES (0.1%)
SSI, Ltd. + 100 875
-----------
SOFTWARE (1.5%)
Satyam Computers 300 21,440
-----------
TOTAL INDIA 86,869
-----------
ISRAEL (0.5%)
IT CONSULTING & SERVICES (0.5%)
Check Point Software Technologies, Ltd. + 44 7,612
-----------
TOTAL ISRAEL 7,612
-----------
MALAYSIA (8.4%)
BANKS (2.2%)
Commerce Asset Holdings BHD 5,100 14,361
Malayan Banking BHD 4,400 18,295
-----------
32,656
-----------
See Accompanying Notes to Financial Statements.
15
<PAGE>
WARBURG PINCUS INSTITUTIONAL FUND, INC. -- EMERGING MARKETS PORTFOLIO
SCHEDULE OF INVESTMENTS (CONT'D)--APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
------ -----
MALAYSIA (cont'd)
DIVERSIFIED TELECOMMUNICATION SERVICES (1.0%)
Telekom Malaysia BHD 4,000 $ 13,895
-----------
ELECTRIC UTILITIES (0.8%)
Tenaga Nasional BHD 3,400 11,274
-----------
HOTEL RESTAURANTS & LEISURE (3.0%)
Genting BHD 2,163 8,709
Resorts World 6,000 19,422
Tanjong PLC 6,000 16,579
-----------
44,710
-----------
MEDIA (0.5%)
New Straits Times Press 2,224 7,433
-----------
SEMICONDUCTOR EQUIPMENT & PRODUCTS (0.9%)
Unisem BHD 1,500 13,323
-----------
TOTAL MALAYSIA 123,291
-----------
MEXICO (7.1%)
BANKS (0.6%)
Grupo Financiero Banamex Accival SA de CV + 2,250 8,127
-----------
BEVERAGES (1.7%)
Fomento Economico Mexicano SA de CV ADR 600 24,750
-----------
CONSTRUCTION MATERIALS (0.7%)
Cemex SA de CV ADR + 500 10,937
-----------
DIVERSIFIED TELECOMMUNICATION SERVICES (2.6%)
Carso Global Telecom SA + 3,260 8,658
Telefonos de Mexico SA ADR 498 29,289
-----------
37,947
-----------
WIRELESS TELECOMMUNICATION SERVICES (1.5%)
Grupo Iusacell SA ADR Series V + 1,408 22,440
-----------
TOTAL MEXICO 104,201
-----------
RUSSIA (1.2%)
ELECTRIC UTILITIES (0.4%)
Unified Energy Systems ADR 300 5,592
-----------
OIL & GAS (0.8%)
Lukoil Holding ADR 100 6,028
Surgutneftegaz ADR + 400 6,070
-----------
12,098
-----------
TOTAL RUSSIA 17,690
-----------
SOUTH AFRICA (8.6%)
BANKS (0.8%)
Standard Bank Investment Corp., Ltd. 3,300 12,169
-----------
See Accompanying Notes to Financial Statements.
16
<PAGE>
WARBURG PINCUS INSTITUTIONAL FUND, INC. -- EMERGING MARKETS PORTFOLIO
SCHEDULE OF INVESTMENTS (CONT'D)--APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
------ -----
SOUTH AFRICA (cont'd)
BEVERAGES (1.1%)
South African Breweries PLC 2,067 $ 15,245
-----------
DIVERSIFIED FINANCIALS (0.4%)
Rembrant Group, Ltd. 800 6,207
-----------
FOREST PRODUCTS & PAPER (1.4%)
Sappi, Ltd. 2,920 20,459
-----------
INDUSTRIAL CONGLOMERATES (1.0%)
Imperial Holdings, Ltd. 1,718 14,701
-----------
INSURANCE (2.2%)
Sanlam, Ltd. 27,450 32,595
-----------
IT CONSULTING & SERVICES (1.7%)
Dimension Data Holdings, Ltd. + 2,528 16,594
Firstrand, Ltd. 7,351 8,675
-----------
25,269
-----------
TOTAL SOUTH AFRICA 126,645
-----------
SOUTH KOREA (9.8%)
BANKS (0.9%)
Housing & Commercial Bank, Korea 781 13,372
-----------
CHEMICALS (0.9%)
L.G. Chemical, Ltd. 600 13,787
-----------
CONSTRUCTION & ENGINEERING (0.1%)
Daelim Industrial Co., Ltd. 250 1,392
-----------
DIVERSIFIED TELECOMMUNICATION SERVICES (2.9%)
Cheil Communications, Inc. 64 6,719
Dacom Corp. + 30 4,352
Korea Telecom Corp. 280 19,126
SK Telecom Co., Ltd. 50 13,292
-----------
43,489
-----------
ELECTRIC UTILITIES (1.2%)
Korea Electric Power Corp. 600 17,572
-----------
HOUSEHOLD DURABLES (0.6%)
L.G. Electronics 321 8,562
-----------
METALS & MINING (0.9%)
Pohang Iron & Steel Co., Ltd. 160 12,797
-----------
SEMICONDUCTOR EQUIPMENT & PRODUCTS (2.3%)
Samsung Electronics Co., Ltd. 125 33,792
-----------
TOTAL SOUTH KOREA 144,763
-----------
See Accompanying Notes to Financial Statements.
17
<PAGE>
WARBURG PINCUS INSTITUTIONAL FUND, INC. -- EMERGING MARKETS PORTFOLIO
SCHEDULE OF INVESTMENTS (CONT'D)--APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
------ -----
TAIWAN (13.1%)
BANKS (1.9%)
Bank Sinopac 21,000 $ 11,659
Chinatrust Commercial Bank + 20,000 16,525
Taishin International Bank + 360 187
-----------
28,371
-----------
COMPUTERS & PERIPHERALS (1.8%)
Asustek Computer Inc. 1,000 11,071
Quanta Computer, Inc. 2,000 15,546
-----------
26,617
-----------
DIVERSIFIED FINANCIALS (0.8%)
China Development Industrial Bank + 8,000 12,097
-----------
SEMICONDUCTOR EQUIPMENT & PRODUCTS (8.6%)
Macronix International Co., Ltd. ADR 1,000 30,562
Taiwan Semiconductor Manufacturing Co. + 5,700 36,673
United Microelectronics Co., Ltd. + 7,850 26,535
Via Technologies, Inc. + 1,000 16,656
Winbond Electronics Corp. + 5,000 15,431
-----------
125,857
-----------
TOTAL TAIWAN 192,942
-----------
THAILAND (0.5%)
WIRELESS TELECOMMUNICATION SERVICES (0.5%)
Advanced Information Service Public Co., Ltd. + 615 7,202
-----------
TOTAL THAILAND 7,202
-----------
TURKEY (6.9%)
BANKS (3.8%)
Dogan Yayin Holding AS + 753,500 18,196
Yapi Ve Kredi Bankasi AS 1,180,969 37,703
-----------
55,899
-----------
DIVERSIFIED FINANCIALS (2.4%)
KOC Holding AS 60,542 12,142
Turkiye Is Bankasi AS Class C + 420,000 23,036
-----------
35,178
-----------
FOOD & DRUG RETAILING (0.7%)
Migros Turkey TAS 16,266 11,052
-----------
TOTAL TURKEY 102,129
-----------
TOTAL COMMON STOCKS (Cost $1,111,336) 1,229,326
-----------
See Accompanying Notes to Financial Statements.
18
<PAGE>
WARBURG PINCUS INSTITUTIONAL FUND, INC. -- EMERGING MARKETS PORTFOLIO
SCHEDULE OF INVESTMENTS (CONT'D)--APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
------ -----
PREFERRED STOCKS (2.8%)
BRAZIL (2.7%)
OIL & GAS (2.7%)
Petroleo Brasileiro SA 169,566 $ 40,417
-----------
TOTAL BRAZIL 40,417
-----------
TAIWAN (0.1%)
BANKING (0.1%)
Taishin International Bank 4,620 1,479
-----------
TOTAL TAIWAN 1,479
-----------
TOTAL PREFERRED STOCKS (Cost $30,960) 41,896
-----------
RIGHTS (0.0%)
THAILAND (0.0%)
DIVERSIFIED TELECOMMUNICATION SERVICES (0.0%)
Telecomasia Corp. Public Co., Ltd.+ 3,094 0
-----------
TOTAL THAILAND 0
-----------
TOTAL RIGHTS (Cost $0) 0
-----------
SHORT TERM INVESTMENTS (10.4%)
Institutional Money Market Trust 83,001 83,001
RBB Money Market Portfolio 70,815 70,815
-----------
TOTAL SHORT TERM INVESTMENTS (Cost $153,816) 153,816
-----------
TOTAL INVESTMENTS AT VALUE (96.5%) (Cost $1,296,112*) 1,425,038
OTHER ASSETS IN EXCESS OF LIABILITIES (3.5%) 50,743
-----------
NET ASSETS (100.0%) $ 1,475,781
===========
INVESTMENT ABBREVIATIONS
ADR = American Depository Receipt
--------------------------------------------------------------------------------
+ Non-income producing security.
* Cost for federal income tax purposes is $1,304,344.
See Accompanying Notes to Financial Statements.
19
<PAGE>
WARBURG PINCUS INSTITUTIONAL FUND, INC. -- JAPAN GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS (CONT'D)--APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
------ -----
COMMON STOCKS (100.2%)
COMMERCIAL SERVICES & SUPPLIES (2.1%)
Trans Cosmos, Inc. 900 $ 179,048
-----------
COMMUNICATIONS EQUIPMENT (0.7%)
Hikari Tsushin, Inc. 400 57,740
-----------
COMPUTERS & PERIPHERALS (2.0%)
Fujitsu, Ltd. 6,000 169,887
-----------
DIVERSIFIED FINANCIALS (17.4%)
Daiwa Securities Group, Inc. 20,000 305,353
Japan Associated Finance Co., Ltd. 1,000 175,809
The Nikko Securities Co., Ltd. 23,000 271,348
Nomura Securities Co., Ltd. 12,000 302,022
Orix Corp. 2,160 308,196
Shohkoh Fund & Co., Ltd. 670 119,652
-----------
1,482,380
-----------
DIVERSIFIED TELECOMMUNICATION SERVICES (7.4%)
DDI Corp. 130 149,160
Japan Telecom Co., Ltd. 80 407,138
KDD Corp. 600 69,509
-----------
625,807
-----------
ELECTRICAL EQUIPMENT (2.8%)
Funai Electric Co., Ltd. 100 55,519
Megachips Corp. 3,000 183,489
-----------
239,008
-----------
ELECTRONIC EQUIPMENT & INSTRUMENTS (3.7%)
Kyocera Corp. 1,900 317,688
-----------
HEALTH CARE EQUIPMENT & SUPPLIES (2.4%)
Hoya Corp. 2,000 203,569
-----------
HOUSEHOLD DURABLES (5.2%)
Sony Corp. 3,900 447,842
-----------
INTERNET SOFTWARE & SERVICES (20.7%)
Internet Intitiative Japan, Inc. ADR+ 2,200 132,000
Softbank Corp. 2,200 541,493
Softbank Corp. New + 4,400 1,087,057
-----------
1,760,550
-----------
IT CONSULTING & SERVICES (3.3%)
Fujitsu Support & Service, Inc. 1,900 281,295
-----------
LEISURE EQUIPMENT & PRODUCTS (3.3%)
Nintendo Co., Ltd. 1,700 283,146
-----------
See Accompanying Notes to Financial Statements.
20
<PAGE>
WARBURG PINCUS INSTITUTIONAL FUND, INC. -- JAPAN GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS (CONT'D)--APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
------ -----
COMMON STOCKS (CONT'D)
MEDIA (1.0%)
Kadokawa Shoten Publishing Co., Ltd. 500 $ 80,965
-----------
SEMICONDUCTOR EQUIPMENT & PRODUCTS (17.7%)
Advantest Corp. 1,800 411,561
Rohm Co., Ltd. 800 267,971
Tokyo Electronics, Ltd. 3,000 488,843
Tokyo Seimitsu Co., Ltd. 3,200 334,593
-----------
1,502,968
-----------
SPECIALTY RETAIL (4.5%)
JAC Co., Ltd. 1,900 137,307
Shimamura Co. 1,700 247,438
-----------
384,745
-----------
TEXTILES & APPAREL (1.7%)
World Co., Ltd. 1,950 146,514
-----------
WIRELESS TELECOMMUNICATION SERVICES (4.3%)
NTT DoCoMo, Inc. 110 367,442
-----------
TOTAL COMMON STOCKS (Cost $3,675,396) 8,530,594
-----------
SHORT TERM INVESTMENTS (0.0%)
RBB Money Market Portfolio (Cost $1) 1 1
-----------
TOTAL INVESTMENTS AT VALUE (100.2%) (Cost $3,675,397*) 8,530,595
LIABILITIES IN EXCESS OF OTHER ASSETS (0.2%) (17,585)
-----------
NET ASSETS (100.0%) $ 8,513,010
INVESTMENT ABBREVIATIONS
ADR = American Depository Receipt
--------------------------------------------------------------------------------
+ Non-income producing security.
* Also cost for federal income tax purposes.
See Accompanying Notes to Financial Statements.
21
<PAGE>
WARBURG PINCUS INSTITUTIONAL FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY EMERGING MARKETS JAPAN GROWTH
PORTFOLIO PORTFOLIO PORTFOLIO
-------------------- ---------------- ------------
<S> <C> <C> <C>
ASSETS
Investments, at value (Cost-$341,930,429,
$1,296,112 and $3,675,397, respectively) $413,186,965 $ 1,425,038 $8,530,595
Foreign currency (Cost-$9,355,491, $50,813
and $0, respectively) 9,356,880 50,940 0
Receivable for investments sold 6,476,736 134,454 0
Dividends, interest and reclaims receivable 1,642,887 2,850 23,089
Receivable for fund shares sold 165,968 146 0
Receivable from investment adviser 0 1,609 0
Prepaid expenses and other assets 5,062 3,232 9,489
------------ ----------- ----------
Total Assets 430,834,498 1,618,269 8,563,173
------------ ----------- ----------
LIABILITIES
Advisory fee payable 242,017 0 10,736
Administrative service fee payable 36,102 126 1,130
Payable for investments purchased 488,662 106,998 0
Accrued expenses payable 267,352 19,817 25,120
Other liabilities 5,877 15,547 13,177
------------ ----------- ----------
Total Liabilities 1,040,010 142,488 50,163
------------ ----------- ----------
NET ASSETS
Capital Stock, $0.001 par value $ 20,458 $ 146 $ 307
Paid in capital 214,486,230 19,291,054 1,092,457
Accumulated net investment loss (4,161,970) 0 0
Accumulated net realized gain (loss) from
investments and foreign currency
related items 148,343,686 (17,929,194) 2,565,487
Net unrealized appreciation from investments
and foreign currency related items 71,106,084 113,775 4,854,759
------------ ----------- ----------
Net assets $429,794,488 $ 1,475,781 $8,513,010
============ =========== ==========
Shares outstanding 20,457,707 145,853 307,046
------------ ----------- ----------
NET ASSET VALUE, offering price and
redemption price per share $ 21.01 $ 10.12 $ 27.73
============ =========== ==========
</TABLE>
See Accompanying Notes to Financial Statements.
22
<PAGE>
WARBURG PINCUS INSTITUTIONAL FUND, INC.
STATEMENTS OF OPERATIONS
For the Six Months Ended April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY EMERGING MARKETS JAPAN GROWTH
PORTFOLIO PORTFOLIO PORTFOLIO
-------------------- ---------------- ------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividends $ 2,266,997 $ 14,563 $ 27,679
Interest 202,228 1,523 1,949
Foreign Taxes Withheld (257,537) (13,233) (4,152)
----------- -------- ----------
Total investment income 2,211,688 2,853 25,476
----------- -------- ----------
EXPENSES:
Investment Advisory Fees 1,904,232 8,021 110,633
Administrative Services Fees 506,684 6,938 24,138
Custodian/Sub-custodian Fees 223,008 2,279 6,463
Interest Expense 128,969 69 661
Transfer Agent Fees 49,122 756 1,408
Printing Fees 32,698 2,250 5,108
Legal Fees 32,109 388 668
Audit Fees 12,278 5,195 5,183
Registration Fees 8,362 7,080 9,222
Insurance Expense 1,678 189 134
Directors Fees 1,269 1,007 966
Miscellaneous Expense 8,903 668 457
----------- -------- ----------
2,909,312 34,840 165,041
Less: fees waived, expenses reimbursed
and transfer agent offsets (648,037) (24,794) (39,322)
----------- -------- ----------
Total expenses 2,261,275 10,046 125,719
----------- -------- ----------
Net investment loss (49,587) (7,193) (100,243)
----------- -------- ----------
NET REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS AND
FOREIGN CURRENCY RELATED ITEMS:
Net realized gain from security and
other related transactions (net of
capital gains taxes of $3,421 for
the Emerging Market Portfolio) 148,917,030 421,241 2,522,875
Net realized gain (loss) from foreign
currency related items 487,364 (7,184) (454,943)
Net change in unrealized appreciation
(depreciation) from investments (net
of estimated deferred capital gains
taxes of $9,933 for the Emerging
Markets Portfolio) (65,871,130) (70,736) (2,458,619)
Net change in unrealized appreciation
(depreciation) from foreign currency
related items (49,507) (5,900) 41,809
----------- -------- ----------
Net realized and unrealized gain (loss)
from investments and foreign
currency related items 83,483,757 337,421 (348,878)
----------- -------- ----------
Net increase (decrease) in net assets
resulting from operations $83,434,170 $330,228 $ (449,121)
=========== ======== ==========
</TABLE>
See Accompanying Notes to Financial Statements.
23
<PAGE>
WARBURG PINCUS INSTITUTIONAL FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY 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) $ (49,587) $ 10,513,023
Net realized gain (loss) from security
and other related transactions 148,917,030 127,064,059
Net realized gain (loss) from foreign
currency related items 487,364 (603,637)
Net realized foreign forward currency loss 0 (16,920,779)
Net change in unrealized appreciation
(depreciation)from investments (65,871,130) 86,982,614
Net change in unrealized appreciation
(depreciation)from foreign currency
related items (49,507) 12,234,104
------------- --------------
Net increase (decrease) in net assets
resulting from operations 83,434,170 219,269,384
------------- --------------
FROM DIVIDENDS AND DISTRIBUTIONS:
Dividends from net investment income (16,548,760) (9,397,386)
Distributions from net realized gains (4,574,109) 0
------------- --------------
Net decrease in net assets from
dividends and distributions (21,122,869) (9,397,386)
------------- --------------
FROM CAPITAL SHARE TRANSACTIONS:
Proceeds from sale of shares 178,035,714 185,527,095
Reinvestment of dividends and distributions 19,433,416 8,012,861
Net asset value of shares redeemed (381,816,173) (870,823,484)
------------- --------------
Net increase (decrease) in net assets
from capital share transactions (184,347,043) (677,283,528)
------------- --------------
Net increase (decrease) in net assets (122,035,742) (467,411,530)
NET ASSETS:
Beginning of period 551,830,230 1,019,241,760
------------- --------------
End of period $ 429,794,488 $ 551,830,230
============= ==============
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS): $ (4,161,970) $ 11,949,013
============= ==============
</TABLE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
EMERGING MARKETS PORTFOLIO JAPAN GROWTH PORTFOLIO
--------------------------------- --------------------------------
FOR THE FOR THE
SIX MONTHS SIX MONTHS
ENDED FOR THE ENDED FOR THE
AAPRIL 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) $ (7,193) $ 68,097 $ (100,243) $ (60,880)
Net realized gain (loss) from security
and other related transactions 421,241 (2,496,656) 2,522,875 1,015,178
Net realized gain (loss) from foreign
currency related items (7,184) (91,187) (454,943) 47,514
Net realized foreign forward currency loss 0 0 0 (474,212)
Net change in unrealized appreciation
(depreciation)from investments (70,736) 3,408,887 (2,458,619) 7,324,945
Net change in unrealized appreciation
(depreciation)from foreign currency
related items (5,900) (8,861) 41,809 170,498
---------- ------------ ----------- -----------
Net increase (decrease) in net assets
resulting from operations 330,228 880,280 (449,121) 8,023,043
---------- ------------ ----------- -----------
FROM DIVIDENDS AND DISTRIBUTIONS:
Dividends from net investment income 0 (250,526) (14,982) (14,953)
Distributions from net realized gains 0 0 (569,103) 0
---------- ------------ ----------- -----------
Net decrease in net assets from
dividends and distributions 0 (250,526) (584,085) (14,953)
---------- ------------ ----------- -----------
FROM CAPITAL SHARE TRANSACTIONS:
Proceeds from sale of shares 15,000 28,356 100,000 8,937,279
Reinvestment of dividends and distributions 0 250,526 580,695 1,090
Net asset value of shares redeemed (104,021) (23,100,584) (9,532,046) (24,692)
---------- ------------ ----------- -----------
Net increase (decrease) in net assets
from capital share transactions (89,021) (22,821,702) (8,851,351) 8,913,677
---------- ------------ ----------- -----------
Net increase (decrease) in net assets 241,207 (22,191,948) (9,884,557) 16,921,767
NET ASSETS:
Beginning of period 1,234,574 23,426,522 18,397,567 1,475,800
---------- ------------ ----------- -----------
End of period $1,475,781 $ 1,234,574 $ 8,513,010 $18,397,567
========== ============ =========== ===========
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS): $ 0 $ 0 $ 0 $ 14,965
========== ============ =========== ===========
</TABLE>
See Accompanying Notes to Financial Statements.
24-25
<PAGE>
WARBURG PINCUS INSTITUTIONAL FUND, INC. -- INTERNATIONAL EQUITY 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 1995
-------------- ------ ------ ------ ------ -------
<S> <C> <C> <C> <C> <C> <C>
PER-SHARE DATA
Net asset value, beginning of period $ 18.85 $ 14.41 $ 16.51 $ 16.14 $ 15.10 $ 16.34
-------- -------- ---------- ---------- -------- --------
INVESTMENT ACTIVITIES:
Net investment income 0.11 0.20(a) 0.21 0.20 0.26 0.15
Net gains (losses) on
investments and foreign
currency related items
(both realized and unrealized) 3.05 4.38 (0.91) 0.78 1.28 (0.64)
-------- -------- ---------- ---------- -------- --------
Total from investment
activities 3.16 4.58 (0.70) 0.98 1.54 (0.49)
-------- -------- ---------- ---------- -------- -------
LESS DIVIDENDS AND DISTRIBUTIONS:
Dividends from net
investment income (0.78) (0.14) (0.18) (0.13) (0.50) (0.18)
Distributions from net realized
gains (0.22) 0.00 (1.22) (0.48) 0.00 (0.57)
-------- -------- ---------- ---------- -------- --------
Total dividends and
distributions (1.00) (0.14) (1.40) (0.61) (0.50) (0.75)
-------- -------- ---------- ---------- -------- --------
Net asset value, end of period $ 21.01 $ 18.85 $ 14.41 $ 16.51 $ 16.14 $ 15.10
======== ======== ========== ========== ======== ========
Total return 16.94%+ 32.02% (4.11)% 6.20% 10.48% (2.83)%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period
(000s omitted) $429,794 $551,830 $1,019,242 $1,169,817 $937,443 $507,759
Ratio of expenses to average
net assets .98%*@ .96%@ .95%@ .95%@ .96%@ .95%
Ratio of net income (loss) to
average net assets (.02)%* 1.23% 1.21% .98% 1.05% 1.20%
Decrease reflected in above
operating expense
ratios due to waivers/
reimbursements .24%* .17% .13% .14% .18% .23%
Portfolio turnover rate 109.45% 120.24% 113.58% 69.99% 29.91% 39.70%
-------------------------------------------------------------------------------
<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 expense. These arrangements resulted in a reduction to the net
expense ratio by .03% for the six months ended April 30, 2000 and .01%, .00%,
.00% and .01% for the years ended October 31, 1999, 1998, 1997 and 1996,
respectively. The operating expense ratio after reflecting these arrangements
was .95% for the six months ended April 30, 2000 and .95% for each of the
years ended October 31, 1999, 1998, 1997 and 1996, respectively.
* Annualized.
+ Non annualized.
See Accompanying Notes to Financial Statements.
</FN>
</TABLE>
26
<PAGE>
WARBURG PINCUS INSTITUTIONAL FUND, INC. -- EMERGING MARKETS 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
-------------- ------ ------ ------ ------
<S> <C> <C> <C> <C> <C>
PER-SHARE DATA
Net asset value, beginning of period $ 8.03 $ 5.72 $ 9.36 $ 9.86 $ 10.00
------ ------ ------- ------- -------
INVESTMENT ACTIVITIES:
Net investment income (loss) (0.07) 0.37 0.11(a) 0.10 0.01
Net gains (losses) on investments
and foreign currency related items
(both realized and unrealized) 2.16 2.00 (2.99) (0.53) (0.15)
------ ------ ------- ------- -------
Total from investment activities 2.09 2.37 (2.88) (0.43) (0.14)
------ ------ ------- ------- -------
LESS DIVIDENDS AND DISTRIBUTIONS:
Dividends from net investment income 0.00 (0.06) (0.01) (0.02) 0.00
Distributions from net realized gains 0.00 0.00 (0.75) (0.05) 0.00
------ ------ ------- ------- -------
Total dividends and distributions 0.00 (0.06) (0.76) (0.07) 0.00
------ ------ ------- ------- -------
Net asset value, end of period $10.12 $ 8.03 $ 5.72 $ 9.36 $ 9.86
====== ====== ======= ======= =======
Total return 26.03%+ 41.90% (32.90)% (4.43)% (1.40)%+
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period
(000s omitted) $1,476 $1,235 $23,427 $37,281 $29,698
Ratio of expenses to average
net assets 1.28%*@ 1.25%@ 1.25%@ 1.25%@ 1.25%*@
Ratio of net income (loss) to
average net assets (.90)%* 1.23% 1.54% .92% 1.75%*
Decrease reflected in above operating
expense ratios due to waivers/
reimbursements 3.06%* .96% .16% .40% 2.18%*
Portfolio turnover rate 228.48% 150.10% 152.57% 107.21% 2.39%
--------------------------------------------------------------------------------
<FN>
@ Interest earned on uninvested cash balances is used to offset portions of the
transfer agent expense. These arrangements resulted in a reduction to the net
expense ratio by .03% for the six months ended April 30, 2000 and .00% for
the years ended October 31, 1999, 1998, 1997 and 1996 respectively. The
operating expense ratio after reflecting these arrangements was 1.25% for the
six months ended April 30, 2000 and 1.25% for each of the years ended October
31, 1999, 1998, 1997 and 1996 respectively.
* Annualized.
+ Non annualized.
** For the period September 30, 1996 (commencement of operations) through
October 31, 1996.
</FN>
</TABLE>
See Accompanying Notes to Financial Statements.
27
<PAGE>
WARBURG PINCUS INSTITUTIONAL FUND, INC. -- JAPAN GROWTH 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
-------------- ------ ------
<S> <C> <C> <C>
PER-SHARE DATA
Net asset value, beginning of period $27.74 $ 9.13 $10.00
------ ------ ------
INVESTMENT ACTIVITIES:
Net investment income (loss) (0.42) (0.09) 0.07
Net gains (losses) on investments
and foreign currency related
items (both realized and unrealized) 1.29 18.79 (0.85)
------ ------ ------
Total from investment activities 0.87 18.70 (0.78)
------ ------ ------
LESS DIVIDENDS AND DISTRIBUTIONS:
Dividends from net investment income (0.02) (0.09) (0.09)
Distributions from net realized gains (0.86) 0.00 0.00
------ ------ ------
Total dividends and distributions (0.88) (0.09) (0.09)
------ ------ ------
Net asset value, end of period $27.73 $27.74 $ 9.13
====== ====== ======
Total return 2.74%+ 206.60% (7.84)%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period
(000s omitted) $8,513 $18,398 $1,476
Ratio of expenses
to average net assets 1.28%*@ 1.27%@ 1.25%@
Ratio of net income (loss) to
average net assets (1.00)%* (.85)% .39%
Decrease reflected in above
operating expense ratios
due to waivers/reimbursements .36%* 1.40% 4.52%
Portfolio turnover rate 17.51% 70.37% 39.88%
--------------------------------------------------------------------------------
<FN>
@ Interest earned on uninvested cash balances is used to offset portions of the
transfer agent expense. These arrangements resulted in a reduction to the net
expense ratio by .03% for the six months ended April 30, 2000 and .02% and
.00% for the years ended October 31, 1999 and 1998, respectively. The
operating expense ratio after reflecting these arrangements was 1.25% for the
six months ended April 30, 2000 and 1.25% for each of the years ended October
31, 1999 and 1998, respectively.
* Annualized.
+ Non annualized.
</FN>
</TABLE>
See Accompanying Notes to Financial Statements.
28
<PAGE>
WARBURG PINCUS INSTITUTIONAL FUND, INC.
NOTES TO FINANCIAL STATEMENTS
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Warburg Pincus Institutional Fund, Inc. (the "Fund")is an open-end management
investment company registered under the Investment Company Act of 1940, as
amended, (the "1940 Act") and was incorporated under the laws of Maryland on May
13, 1992. The Fund currently offers seven managed investment Funds of which
three are contained in this report. The International Equity Portfolio
("International Equity") is classified as a diversified, open-end management
investment company and the Emerging Markets Portfolio ("Emerging Markets") and
the Japan Growth Portfolio ("Japan Growth") are classified as non-diversified
open-end management investment companies (each, a "Portfolio" and collectively,
the "Portfolios").
Investment objectives for each Portfolio are as follows: International Equity
seeks long-term capital appreciation; Emerging Markets seeks growth of capital;
and Japan Growth seeks long-term growth of capital.
The net asset value 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.
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 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
29
<PAGE>
WARBURG PINCUS INSTITUTIONAL FUND, INC.
NOTES TO FINANCIAL STATEMENTS
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES -- (CONT'D)
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.
In addition, focusing investment in a single country, such as Japan, involves
increased risks.
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. Investments in the securities of issuers
located in emerging markets expose the Portfolio to economic structures that are
generally less diverse and mature than, and to political systems that can be
expected to have less stability than, those of developed countries. The
typically small size of the markets for securities of issuers located in
emerging markets may also result in a lack of liquidity and greater price
volatility.
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.
The Portfolios 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 Portfolios
accrue such taxes when the related income or capital gains are earned.
30
<PAGE>
WARBURG PINCUS INSTITUTIONAL FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONT'D)
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES -- (CONT'D)
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 were invested 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 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 the transfer
agent expense.
For the six months ended April 30, 2000, the Portfolios received credits or
reimbursements under this arrangement as follows:
PORTFOLIO AMOUNT
-------- -------
International Equity $67,995
Emerging Markets 229
Japan Growth 2,824
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
------------ ---------------------------------
International Equity .80% of average daily net assets
Emerging Markets 1.00% of average daily net assets
Japan Growth 1.10% of average daily net assets
31
<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)
For the six months ended April 30, 2000, investment advisory fees, voluntary
waivers and reimbursements were as follows:
<TABLE>
<CAPTION>
GROSS NET EXPENSE
PORTFOLIO ADVISORY FEE WAIVER ADVISORY FEE REIMBURSEMENTS
-------- ------------ ---------- ------------- --------------
<S> <C> <C> <C> <C>
International Equity $1,904,232 $(580,042) $1,324,190 $ 0
Emerging Markets 8,021 (8,021) 0 (15,582)
Japan Growth 110,633 (24,429) 86,204 0
</TABLE>
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. 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
--------- -------------------------
International Equity $238,029
Emerging Markets 802
Japan Growth 10,057
For its administrative services, PFPC currently receives a fee based on the
following fee structure:
AVERAGE DAILY NET ASSETS ANNUAL RATE
---------------------- ---------------------------------
First $250 million .12% of average daily net assets
Second $250 million .10% of average daily net assets
Third $250 million .08% of average daily net assets
Over $750 million .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>
NET
PORTFOLIO CO-ADMINISTRATION FEE WAIVER CO-ADMINISTRATION FEE
-------- --------------------------- ------ ----------------------
<S> <C> <C> <C>
International Equity $268,655 $ 0 $268,655
Emerging Markets 6,136 (962) 5,174
Japan Growth 14,081 (12,069) 2,012
</TABLE>
Provident Distributors, Inc. serves as distributor of each Portfolio's shares
without compensation.
32
<PAGE>
WARBURG PINCUS INSTITUTIONAL FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONT'D)
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
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 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, the Portfolios had the following borrowings under
the Credit Facility:
AVERAGE MAXIMUM
AVERAGE DAILY INTEREST DAILY LOAN
PORTFOLIO LOAN BALANCE RATE % OUTSTANDING
-------- ------------- -------- -----------
International Equity $1,470,912 6.267% $54,169,000
Emerging Markets 978 6.347% 42,000
Japan Growth 10,575 5.978% 285,000
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
--------- ------------ ------------
International Equity $252,782,882 $483,624,536
Emerging Markets 1,685,565 1,945,296
Japan Growth 1,746,866 12,585,047
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)
--------- ------------ ------------ -------------
International Equity $91,919,048 $(20,904,019) $71,015,029
Emerging Markets 231,924 (111,230) 120,694
Japan Growth 5,085,493 (230,295) 4,855,198
33
<PAGE>
WARBURG PINCUS INSTITUTIONAL FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONT'D)
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
5. FORWARD FOREIGN CURRENCY CONTRACTS
Each Portfolio 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 from movements in the value of a foreign currency relative to the U.S.
dollar and from the potential default of counterparties to the contracts. Each
Portfolio will enter into forward contracts primarily for hedging purposes.
Forward currency contracts are adjusted by the daily exchange rate of the
underlying currency and any gains or losses are recorded for financial statement
purposes as unrealized until the contract settlement date.
At April 30, 2000, there were no open forward foreign currency contracts in
the Portfolios.
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, three of which constitute the
interest in the Portfolios.
Transactions in shares of each Portfolio were as follows:
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY EMERGING MARKETS JAPAN GROWTH
-------------------------- -------------------------- -------------------------
FOR THE FOR THE FOR THE
SIX MONTHS FOR THE SIX MONTHS FOR THE SIX MONTHS FOR THE
ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED
APRIL 30, 2000 OCTOBER 31, APRIL 30, 2000 OCTOBER 31, APRIL 30, 2000 OCTOBER 31,
(UNAUDITED) 1999 (UNAUDITED) 1999 (UNAUDITED) 1999
-------------- ------------ ------------ ------------ ------------ -----------
<S> <C> <C> <C> <C> <C> <C>
Shares sold 8,155,650 11,631,374 1,441 3,612 3,152 502,690
Shares issued to shareholders on
reinvestment of dividends and
distributions 961,574 541,044 0 44,184 18,295 107
Shares redeemed (17,937,792) (53,620,959) (9,331) (3,988,292) (377,617) (1,237)
----------- ----------- ------ ---------- -------- -------
Net increase (decrease) in
shares outstanding (8,820,568) (41,448,541) (7,890) (3,940,496) (356,170) 501,560
============ ============ ======= =========== ========= ========
</TABLE>
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. International Equity, Emerging Markets and Japan Growth
reclassified $487,364, $(7,184) and $(454,943), respectively, from accumulated
net realized gain/(loss) from security transactions and foreign currency related
items to undistributed net investment income. Emerging Markets and Japan Growth
reclassified $(14,377) and $(555,203),
34
<PAGE>
WARBURG PINCUS INSTITUTIONAL FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONT'D)
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
7. NET ASSETS -- (CONT'D)
respectively, from accumulated net investment income/(loss) to capital
contributions. Net investment income, net realized gain/(loss) on investments
and net assets were not affected by these reclassifications.
8. CAPITAL LOSS CARRYOVER
At April 30, 2000, Emerging Markets had capital loss carryovers of
$15,647,325 and $2,681,265 expiring in 2006 and 2007, respectively.
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 11th, 2000 the Fund
ceased to be named the Warburg, Pincus Institutional Fund, Inc. and is named the
Credit Suisse Institutional Fund, Inc. There will be no name changes to the
individual Portfolios contained within this report.
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WARBURG PINCUS FUNDS PART OF CREDIT ASSET
SUISSE MANAGEMENT
P.O. BOX 9030, BOSTON, MA 02205-9030
800-222-8977 (BULLET) www.warburg.com
PROVIDENT DISTRIBUTORS, INC., DISTRIBUTOR. WPINI-3-0400
