[GRAPHIC OMITTED]
WARBURG PINCUS FUNDS PART OF CREDIT SUISSE ASSET MANAGEMENT
SEMIANNUAL
REPORT
APRIL 30, 2000
(UNAUDITED)
WARBURG PINCUS
JAPAN GROWTH FUND
(BULLET)
WARBURG PINCUS
JAPAN SMALL COMPANY FUND
More complete information about the Funds, including charges and expenses, is
provided in the PROSPECTUS, which must precede or accompany this document and
which should be read carefully before investing. You may obtain additional
copies by calling 800-WARBURG (800-927-2874) or by writing to Warburg Pincus
Funds, P.O. Box 9030, Boston, MA 02205-9030.
Provident Distributors, Inc., Distributor, located at Four Falls Corporate
Center, 6th floor, West Conshohocken, PA 19428-2961, is not affiliated with
Credit Suisse Asset Management, LLC. Warburg Pincus Funds are advised by Credit
Suisse Asset Management, LLC.
<PAGE>
FROM TIME TO TIME, THE FUNDS' INVESTMENT ADVISER AND CO-ADMINISTRATORS MAY WAIVE
SOME FEES AND/OR REIMBURSE SOME EXPENSES, WITHOUT WHICH PERFORMANCE WOULD BE
LOWER. WAIVERS AND/OR REIMBURSEMENTS ARE SUBJECT TO CHANGE.
RETURNS ARE HISTORICAL AND INCLUDE CHANGE IN SHARE PRICE AND REINVESTMENT OF
DIVIDENDS AND CAPITAL GAINS. PAST PERFORMANCE CANNOT GUARANTEE FUTURE RESULTS.
RETURNS AND SHARE PRICE WILL FLUCTUATE, AND REDEMPTION VALUE MAY BE MORE OR LESS
THAN ORIGINAL COST.
INTERNATIONAL INVESTING ENTAILS SPECIAL RISK CONSIDERATIONS, INCLUDING CURRENCY
FLUCTUATIONS, LOWER LIQUIDITY, ECONOMIC AND POLITICAL RISKS, AND DIFFERENCES IN
ACCOUNTING METHODS.
THE VIEWS OF THE FUNDS' MANAGEMENT ARE AS OF THE DATE OF THE LETTERS AND
PORTFOLIO HOLDINGS DESCRIBED IN THIS DOCUMENT ARE AS OF APRIL 30, 2000; THESE
VIEWS AND PORTFOLIO HOLDINGS MAY HAVE CHANGED SUBSEQUENT TO THESE DATES. NOTHING
IN THIS DOCUMENT IS A RECOMMENDATION TO PURCHASE OR SELL SECURITIES.
FUND SHARES ARE NOT DEPOSITS OR OTHER OBLIGATIONS OF CREDIT SUISSE ASSET
MANAGEMENT, 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 JAPAN GROWTH FUND
SEMIANNUAL INVESTMENT ADVISER'S REPORT -- APRIL 30, 2000
--------------------------------------------------------------------------------
June 20, 2000
Dear Shareholder:
For the six months ended April 30, 2000, the Common Class shares of Warburg
Pincus Japan Growth Fund had a loss of 1.04%, vs. a gain of 3.21% for the
U.S.-dollar-denominated Tokyo Stock Exchange Index ("Topix").* The Fund's
one-year return through April 30, 2000 was 78.22%. Its since-inception (on
December 29, 1995) average annual total return through April 30, 2000 was
23.07%.
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 growing concerns over valuations
on these stocks amid an increasingly difficult environment for the technology
area globally.
Against this backdrop, the Fund had a loss, 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 Fund. 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 Fund during the period in terms of basic
strategy. We continued to look for companies with the potential to benefit from
factors such as 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
Fund'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
1
<PAGE>
WARBURG PINCUS JAPAN GROWTH FUND
SEMIANNUAL INVESTMENT ADVISER'S REPORT -- APRIL 30, 2000 (CONT'D)
--------------------------------------------------------------------------------
spending) we believe that Japan's recovery remains intact, which stands to
support profits while easing risk concerns over time.
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 & 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 FUND'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.
2
<PAGE>
WARBURG PINCUS JAPAN SMALL COMPANY FUND
SEMIANNUAL INVESTMENT ADVISER'S REPORT -- APRIL 30, 2000
--------------------------------------------------------------------------------
June 20, 2000
Dear Shareholder:
For the six months ended April 30, 2000, the Common Class shares of Warburg
Pincus Japan Small Company Fund had a loss of 2.96%, vs. returns of 28.97% and
24.54% for the yen- and dollar-denominated JASDAQ indexes,* respectively, and a
loss of 11.03% for the Morgan Stanley Capital International Japan Small Company
Index.** The Fund's one-year return through April 30, 2000 was 79.51%. Its
five-year and since-inception (on September 30, 1994) average annual total
returns through April 30, 2000 were 19.92% and 12.66%, respectively.
Japan's stock market was highly volatile during the six months, especially
late in the period, buffeted by waves of profit-taking. Indeed, for the first
time in years, there were considerable profits to be taken--numerous Japanese
stocks logged triple-digit gains in 1999--and investors were often quick to sell
on even a hint of discouraging news. This inclination to sell was exacerbated by
turmoil among technology stocks in March and April, which sparked a dramatic
retreat from riskier asset classes broadly. In general, Japan's smaller shares
underperformed their large-cap counterparts for the period, notwithstanding the
JASDAQ's good showing (the index's rise was sharply skewed by two
strong-performing large-cap stocks, one of which was in fact removed from the
JASDAQ during the period).
Against this backdrop, the Fund had a loss, hindered by the late-period
pullback in Japan's market and by weakness in certain "new economy" stocks in
particular. While the sharp downturn in these names clearly weighed on the Fund,
we intend to continue to emphasize technology and Internet-related companies as
an investment theme. In our view, a number of new-economy stocks have good
long-term growth potential, based on such factors as a strong projected rise in
Internet usage in Japan (particularly via wireless technologies) and corporate
Japan's accelerating expenditures on information technology.
We made few noteworthy changes to the Fund during the period in terms of
sector exposure. Our focus remained on the telecommunications, electronics,
computer and financial-services areas, where we generally saw the most
compelling growth stories and attractively priced stocks. In these areas and
elsewhere, we continued to stress companies well-positioned to benefit from
factors such as viable business franchises, the adoption of new technologies and
a longer-term recovery in consumption spending in Japan.
We maintain a positive view on the long-term prospects for Japan's stock
market, notwithstanding the potential for continued significant short-term
3
<PAGE>
WARBURG PINCUS JAPAN SMALL COMPANY FUND
SEMIANNUAL INVESTMENT ADVISER'S REPORT -- APRIL 30, 2000 (CONT'D)
--------------------------------------------------------------------------------
volatility. This reflects our optimism over the economy. Based on our numerous
visits with company managements, and on empirical data that remains, on balance,
encouraging, we believe that Japan's economy has good potential to surprise on
the up side over the next year and beyond.
Another factor that stands to support Japanese stocks is the ongoing
broadening of the country's capital markets. Japan is making significant strides
in providing more access to capital, for example by creating Nasdaq Japan, a
development that could help smaller companies especially. The new exchange will
provide innovative small Japanese companies access to financing that might
otherwise be difficult or impossible to obtain. Yet another encouraging trend is
the dramatic rise of foreign investing in Japan. U.S. companies alone have
invested over $9 billion in Japan over the past two years, more than the total
they invested over the preceding 10 years. The growth and increased breadth of
capital in Japan should provide an economic stimulus over time, lessening the
pressure on Japan's government to boost the economy via "borrow and spend"
projects.
Also worthy of mention--in fact, perhaps the most compelling argument for
Japanese stocks--is a strong corporate-restructuring trend within Japan.
Japanese corporations are increasingly stressing profitability and shareholder
value, evidenced by the continued steady flow of restructuring announcements and
the widespread shedding of unprofitable units. True, restructurings can create
short-term burdens (e.g., higher unemployment and restrained consumption), but
the longer-term implications for investors are quite compelling, in our view.
In sum, we believe that Japan's small-company shares are well worthy of
consideration by investors with a sufficiently high threshold for risk (e.g.,
the risk of heightened short-term volatility). As ever, we will remain focused
on identifying those stocks we deem to have the best long-term growth 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 FUND'S PROSPECTUS, WHICH SHOULD BE READ CAREFULLY
BEFORE INVESTING.
-------------
* The JASDAQ Over-The-Counter Composite Index is an unmanaged index (with no
defined investment objective) composed of stocks traded over-the-counter in
Japan.
** The Morgan Stanley Capital International Japan Small Company Index is
composed of small-cap Japanese stocks.
4
<PAGE>
WARBURG PINCUS JAPAN GROWTH FUND
SCHEDULE OF INVESTMENTS
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
-------- ------
COMMON STOCKS (99.1%)
COMMERCIAL SERVICES & SUPPLIES (4.9%)
Trans Cosmos, Inc. 94,500 $ 18,800,041
Venture Link Co., Ltd. 48,000 3,411,073
------------
22,211,114
------------
COMMUNICATIONS EQUIPMENT (2.6%)
Hikari Tsushin, Inc. 26,000 3,753,068
Yokowo Co., Ltd. 280,000 7,876,262
------------
11,629,330
------------
COMPUTERS & PERIPHERALS (3.3%)
Obic Co., Ltd. 26,400 14,779,095
------------
DIVERSIFIED FINANCIALS (18.1%)
Daiwa Securities Group, Inc. 808,000 12,336,269
Nomura Securities Co., Ltd. 650,000 16,359,529
Orix Corp. 166,800 23,799,562
Shohkoh Fund & Co., Ltd. 43,220 7,718,459
The Nikko Securities Co., Ltd. 1,830,000 21,589,859
------------
81,803,678
------------
DIVERSIFIED TELECOMMUNICATIONS SERVICES (5.7%)
Japan Telecom Co., Ltd. 502 25,547,885
------------
ELECTRICAL EQUIPMENT (5.0%)
Funai Electric Co., Ltd. 41,000 22,762,693
------------
HEALTH CARE EQUIPMENT & SUPPLIES (6.9%)
Hoya Corp. 307,000 31,247,811
------------
HOUSEHOLD DURABLES (4.2%)
Sony Corp. 164,200 18,855,301
------------
INTERNET SOFTWARE & SERVICES (13.6%)
Internet Intitiative Japan, Inc. ADR + 132,700 7,962,000
Softbank Corp. 58,800 14,472,631
Softbank Corp. New+ 117,600 29,054,080
Takasago Electric Industry Co., Ltd. 147,500 9,963,305
------------
61,452,016
------------
IT CONSULTING & SERVICES (2.3%)
Fujitsu Support & Service, Inc. 70,000 10,363,503
------------
MEDIA (0.9%)
Kadokawa Shoten Publishing Co., Ltd. 26,000 4,210,173
------------
See Accompanying Notes to Financial Statements.
5
<PAGE>
WARBURG PINCUS JAPAN GROWTH FUND
SCHEDULE OF INVESTMENTS (CONT'D)
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
-------- ------
SEMICONDUCTOR EQUIPMENT & PRODUCTS (23.7%)
Disco Corp. 127,500 $ 20,174,131
Murata Manufacturing Co., Ltd. 90,000 17,488,411
Rohm Co., Ltd. 61,000 20,432,756
Tokyo Electronics, Ltd. 207,000 33,730,148
Tokyo Seimitsu Co., Ltd. 143,000 14,952,128
------------
106,777,574
------------
SOFTWARE (7.8%)
Konami Co., Ltd. 354,000 21,619,007
Trend Micro, Inc.+ 90,000 13,491,060
------------
35,110,067
------------
TOTAL COMMON STOCKS (Cost $270,824,077) 446,750,240
------------
SHORT TERM INVESTMENTS (0.0%)
RBB Money Market Portfolio (Cost $1) 1 1
------------
TOTAL INVESTMENTS AT VALUE (99.1%) (Cost $270,824,078*) 446,750,241
OTHER ASSETS IN EXCESS OF LIABILITIES (0.9%) 4,198,806
------------
NET ASSETS (100.0%) $450,949,047
============
INVESTMENT ABBREVIATIONS
ADR = American Depository Receipt
--------------------------------------------------------------------------------
+ Non-income producing security.
* Cost for federal income tax purposes is $270,912,411.
See Accompanying Notes to Financial Statements.
6
<PAGE>
WARBURG PINCUS JAPAN SMALL COMPANY FUND
SCHEDULE OF INVESTMENTS
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
-------- ------
COMMON STOCKS (108.2%)
COMMUNICATIONS EQUIPMENT (3.1%)
Hikari Tsushin, Inc. 41,850 $ 6,040,997
Yokowo Co. Ltd. 248,000 6,976,118
------------
13,017,115
------------
COMMERCIAL SERVICES & SUPPLIES (7.8%)
Trans Cosmos, Inc. 163,600 32,546,950
------------
COMPUTERS & PERIPHERALS (5.2%)
Obic Co., Ltd. 38,400 21,496,866
------------
DIVERSIFIED FINANCIALS (12.5%)
Daiwa Securities Group, Inc. 1,207,000 18,428,066
Nomura Securities Co., Ltd. 800,000 20,134,805
Shohkoh Fund & Co., Ltd. 75,330 13,452,835
------------
52,015,706
------------
ELECTRICAL EQUIPMENT (12.5%)
Densei-Lambda K.K. 181,900 3,450,445
Funai Electric Co., Ltd. 63,000 34,976,821
Megachips Corp. 220,000 13,455,898
------------
51,883,164
------------
HOUSEHOLD DURABLES (5.1%)
Sony Corp. 184,200 21,151,927
------------
INTERNET SOFTWARE & SERVICES (17.7%)
Internet Intitiative Japan, Inc. ADR + 242,900 14,574,000
Softbank Corp. 80,000 19,690,655
Softbank Corp. New+ 160,000 39,529,360
------------
73,794,015
------------
IT CONSULTING & SERVICES (2.8%)
Fujitsu Support & Service, Inc. 80,000 11,844,003
------------
MEDIA (1.9%)
Kadokawa Shoten Publishing Co., Ltd. 48,000 7,772,627
------------
REAL ESTATE (0.5%)
Goldcrest Co., Ltd. 300 32,617
Relocation Services Corp. + 44,000 2,178,186
------------
2,210,803
------------
SEMICONDUCTOR EQUIPMENT & PRODUCTS (18.6%)
Disco Corp. 145,000 22,943,129
Tokyo Electronics, Ltd. 180,000 29,330,563
Tokyo Seimitsu Co., Ltd. 240,000 25,094,482
------------
77,368,174
------------
See Accompanying Notes to Financial Statements.
7
<PAGE>
WARBURG PINCUS JAPAN SMALL COMPANY FUND
SCHEDULE OF INVESTMENTS
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
-------- ------
SOFTWARE (12.4%)
Konami Co., Ltd. 400,000 $ 24,428,256
Trend Micro, Inc.+ 180,000 26,982,119
------------
51,410,375
------------
SPECIALTY RETAIL (1.6%)
Jac Co., Ltd. 90,700 6,554,610
------------
WIRELESS TELECOMMUNICATIONS SERVICES (6.4%)
NTT Mobile Communications Network, Inc. 8,000 26,723,032
------------
TOTAL COMMON STOCKS (Cost $228,846,242) 449,789,367
------------
SHORT TERM INVESTMENTS (0.0%)
RBB Money Market Portfolio (Cost $1) 1 1
------------
TOTAL INVESTMENTS (108.2%) (Cost $228,846,243*) 449,789,368
LIABILITIES IN EXCESS OF OTHER ASSETS (8.2%) (33,962,805)
------------
NET ASSETS (100.0%) $415,826,563
============
INVESTMENT ABBREVIATIONS
ADR = American Depository Receipt
--------------------------------------------------------------------------------
+ Non-income producing security.
* Cost for federal income tax purposes is $229,285,518.
See Accompanying Notes to Financial Statements.
8
<PAGE>
WARBURG PINCUS JAPAN FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
JAPAN GROWTH JAPAN SMALL
FUND COMPANY FUND
---------------- -----------------
<S> <C> <C>
ASSETS
Investments at value (Cost $270,824,078 and
$228,846,243, respectively) $446,750,241 $449,789,368
Foreign currency at value (Cost $11,127 and
$29,479 respectively) 10,859 28,978
Cash 0 15,004
Receivable for fund shares sold 5,014,323 3,131,952
Dividends and interest receivable (Cost $717,742
and $739,144 respectively) 703,819 724,853
Prepaid expenses 136,621 46,935
Other assets 14 1,323
------------ ------------
Total Assets 452,615,877 453,738,413
------------ ------------
LIABILITIES
Advisory fee payable 199,745 30,041
Administration fee payable 36,939 38,333
Loan payable 0 35,241,000
Due to custodian 960,300 0
Payable for fund shares redeemed 9,735 1,804,029
Accrued expenses payable 460,111 798,447
------------ ------------
Total Liabilities 1,666,830 37,911,850
------------ ------------
NET ASSETS
Capital stock, $0.001 par value 18,865 24,208
Paid-in capital 218,398,525 35,095,004
Accumulated net investment loss (4,533,488) (6,520,897)
Accumulated net realized gain from investments and
foreign currency related transactions 61,153,173 166,299,915
Net unrealized appreciation from investments and foreign
currency related transactions 175,911,972 220,928,333
------------ ------------
Net Assets $450,949,047 $415,826,563
============ ============
COMMON SHARES
Net assets $445,836,327 $412,293,898
------------ ------------
Shares outstanding 18,649,572 22,883,111
------------ ------------
Net asset value, offering price and
redemption price per share $ 23.91 $ 18.02
============ ============
ADVISOR SHARES
Net assets $ 5,112,720 $ 3,532,665
------------ ------------
Shares outstanding 214,818 195,616
------------ ------------
Net asset value, offering price and redemption price per share $ 23.80 $ 18.06
============ ============
</TABLE>
See Accompanying Notes to Financial Statements.
9
<PAGE>
WARBURG PINCUS JAPAN FUNDS
STATEMENTS OF OPERATIONS
For the Six Months Ended April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
JAPAN GROWTH JAPAN SMALL
FUND COMPANY FUND
--------------- -------------
<S> <C> <C>
Investment Income:
Dividends $ 891,077 $ 957,163
Interest 401,172 296,498
Foreign Taxes Withheld (133,662) (143,574)
------------ -------------
Total investment income 1,158,587 1,110,087
------------ -------------
Expenses:
Investment advisory fees 4,060,309 5,445,117
Administrative fees 658,029 833,817
Interest expense 1,351,646 1,275,617
Shareholder servicing/distribution fees 819,704 1,096,843
Custodian fees 118,314 156,296
Registration fees 70,880 73,513
Transfer agent fees 68,337 165,488
Printing fees 29,996 41,817
Legal fees 26,437 30,990
Audit fees 7,011 7,158
Directors fees 6,709 6,680
Insurance expense 459 443
Miscellaneous expenses 2,386 3,174
------------ -------------
7,220,217 9,136,953
Less: fees waived, expenses reimbursed and
transfer agent offsets (1,528,142) (1,505,969)
------------ -------------
Total expenses 5,692,075 7,630,984
------------ -------------
Net investment loss (4,533,488) (6,520,897)
------------ -------------
Realized and Unrealized Gain from Investments
and Foreign Currency Transactions
Net realized gain/(loss) from:
Security transactions 74,993,565 190,454,364
Foreign currency forward transactions (14,594,802) (28,828,151)
Other foreign exchange translations 964,406 2,006,124
------------ -------------
61,363,169 163,632,337
------------ -------------
Net change in unrealized appreciation/
(depreciation) from:
Investments (10,333,128) (100,196,337)
Translation of assets and liabilities in
foreign currencies 1,910,269 4,836,816
------------ -------------
(8,422,859) (95,359,521)
------------ -------------
Net Gain On Investments And Foreign
Currency Transactions 52,940,310 68,272,816
------------ -------------
Net Increase In Net Assets
Resulting From Operations $ 48,406,822 $ 61,751,919
============ =============
</TABLE>
See Accompanying Notes to Financial Statements.
10
<PAGE>
WARBURG PINCUS JAPAN FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
JAPAN GROWTH FUND JAPAN SMALL COMPANY FUND
----------------------------------- -----------------------------------
FOR THE FOR THE
SIX MONTHS FOR THE SIX MONTHS FOR THE
ENDED YEAR ENDED ENDED YEAR ENDED
APRIL 30, 2000 OCTOBER 31, APRIL 30, 2000 OCTOBER 31,
(UNAUDITED) 1999 (UNAUDITED) 1998
----------------- ---------------- ---------------- -----------------
<S> <C> <C> <C> <C>
FROM OPERATIONS:
Net investment loss $ (4,533,488) $ (2,173,969) $ (6,520,897) $ (3,594,635)
Net realized gain from security
transactions 74,993,565 15,057,930 190,454,364 52,341,786
Net realized loss from foreign currency
forward transactions (14,594,802) (6,310,662) (28,828,151) (8,608,986)
Net realized gain from other foreign
exchange transactions 964,406 (793,627) 2,006,124 (4,327,783)
Net change in unrealized appreciation/
(depreciation) from:
Investments (10,333,128) 183,795,600 (100,196,337) 321,598,806
Translation of assets and liabilities in
foreign currencies 1,910,269 2,884,581 4,836,816 263,857
--------------- --------------- --------------- ---------------
Net increase in net assets
resulting from operations 48,406,822 192,459,853 61,751,919 357,673,045
--------------- --------------- --------------- ---------------
FROM DISTRIBUTIONS:
Distributions from net realized gains
Common Class shares (3,059,783) 0 (2,245,125) 0
Advisor Class shares (19,015) 0 (17,058) 0
--------------- --------------- --------------- ---------------
Net decrease in net assets from
distributions (3,078,798) 0 (2,262,183) 0
--------------- --------------- --------------- ---------------
FROM CAPITAL SHARE TRANSACTIONS:
Proceeds from sale of shares 3,166,965,508 1,406,117,931 1,304,666,728 2,308,528,324
Reinvestment of distributions 2,659,719 0 1,953,420 0
Net asset value of shares redeemed,
net of redemption fees (3,292,868,116) (1,110,254,065) (1,808,975,280) (1,844,809,099)
--------------- --------------- --------------- ---------------
Net increase (decrease) in net assets
from capital share transactions (123,242,889) 295,863,866 (502,355,132) 463,719,225
--------------- --------------- --------------- ---------------
Net increase (decrease) in net assets (77,914,865) 488,323,719 (442,865,396) 821,392,270
--------------- --------------- --------------- ---------------
NET ASSETS:
Beginning of period 528,863,912 40,540,193 858,691,959 37,299,689
--------------- --------------- --------------- ---------------
End of period $ 450,949,047 $ 528,863,912 $ 415,826,563 $ 858,691,959
=============== =============== =============== ===============
Undistributed net investment loss $ (4,533,488) $ 0 $ (6,520,897) $ 0
=============== =============== =============== ===============
</TABLE>
See Accompanying Notes to Financial Statements.
11
<PAGE>
WARBURG PINCUS JAPAN GROWTH FUND
FINANCIAL HIGHLIGHTS
(For a Common Share of the Fund Outstanding Throughout Each Period)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED FOR THE YEAR ENDED OCTOBER 31,
APRIL 30, 2000 ------------------------------------------
(UNAUDITED) 1999 1998 1997 1996**
-------------- -------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
PER-SHARE DATA
Net asset value, beginning of period $ 24.26 $ 8.59 $ 9.74 $ 9.85 $ 10.00
-------- -------- ------- ------- -------
INVESTMENT ACTIVITIES:
Net investment loss (0.24) (0.10) (0.07)(a) (0.07) (0.06)
Net gains (losses) on investments
and foreign currency related
items (both realized and unrealized) 0.00 15.77 (1.08) 0.21 (0.09)
-------- -------- ------- ------- -------
Total from investment activities (0.24) 15.67 (1.15) 0.14 (0.15)
-------- -------- ------- ------- -------
LESS DIVIDENDS AND DISTRIBUTIONS:
Dividends from net investment income 0.00 0.00 0.00 (0.20) 0.00
Distributions from net realized gains (0.11) 0.00 0.00 0.00 0.00
Distributions in excess of net
realized gains 0.00 0.00 0.00 (0.05) 0.00
-------- -------- ------- ------- -------
Total dividends and distributions (0.11) 0.00 0.00 (0.25) 0.00
-------- -------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD $ 23.91 $ 24.26 $ 8.59 $ 9.74 $ 9.85
======== ======== ======= ======= =======
Total return (1.04)%+ 182.42% (11.81)% 1.47% (1.50)%+
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s omitted) $445,836 $525,489 $40,519 $24,954 $20,157
Ratio of expenses to average net assets @ 1.78%* 1.76% 1.75% 1.75% 1.76%*
Ratio of net investment loss to average
net assets (1.39)%* (1.32)% (.76)% (1.03)% (1.03)%*
Decrease reflected in above operating
expense ratios due to waivers/
reimbursements 0.47%* 0.45% 0.53% 0.81% 1.79%*
Portfolio turnover rate 80.39% 171.12% 75.82% 93.84% 51.72%
<FN>
--------------------------------------------------------------------------------
* Annualized.
(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 Common Class shares' expense ratio by .03% for the six months ended
April 30, 2000 and .01%, .00%, .00%, and .01% for the years ending October
31, 1999, 1998, 1997 and for the period ending 1996, respectively. The
Common Class shares' operating expense ratios after reflecting these
arrangements were 1.75% for the six months ended April 30, 2000 and 1.75%
for each of the years ended October 31, 1999, 1998, 1997 and for the period
ending 1996.
+ Non-annualized.
** For the period December 29, 1995 (commencement of operations) through
October 31, 1996.
</FN>
</TABLE>
See Accompanying Notes to Financial Statements.
12
<PAGE>
WARBURG PINCUS JAPAN SMALL COMPANY FUND
FINANCIAL HIGHLIGHTS
(For a Common Share of the Fund Outstanding Throughout Each Period)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED FOR THE YEAR ENDED OCTOBER 31,
APRIL 30, 2000 -------------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
-------------- -------- ------- ------- ------- --------
<S> <C> <C> <C> <C> <C> <C>
PER-SHARE DATA
Net asset value,
beginning of period $ 18.61 $ 5.57 $ 6.37 $ 8.47 $ 9.09 $ 9.85
-------- -------- ------- ------- -------- --------
INVESTMENT ACTIVITIES:
Net investment loss (0.28) (0.08) (0.01) (1.22) (0.23) 0.00
Net gains (losses) on
investments and foreign
currency related items
(both realized and unrealized) (0.48) 13.12 (0.67) (0.79) (0.01) (0.76)
Net gain due to deferred
contingent sales charge 0.22 0.00 0.00 0.00 0.00 0.00
-------- -------- ------- ------- -------- --------
Total from investment
activities (0.54) 13.04 (0.68) (2.01) (0.24) (0.76)
-------- -------- ------- ------- -------- --------
LESS DIVIDENDS AND DISTRIBUTIONS:
Dividends from net
investment income 0.00 0.00 0.00 0.00 (0.38) 0.00
Distributions from net
realized gains (0.05) 0.00 (0.07) (0.09) 0.00 0.00
Return of capital 0.00 0.00 (0.05) 0.00 0.00 0.00
-------- -------- ------- ------- -------- --------
Total dividends and
distributions (0.05) 0.00 (0.12) (0.09) (0.38) 0.00
-------- -------- ------- ------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 18.02 $ 18.61 $ 5.57 $ 6.37 $ 8.47 $ 9.09
======== ======== ======= ======= ======== ========
Total return (2.96)%+ 234.11% (10.61)% (23.98)% (2.79)% (7.72)%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period
(000s omitted) $412,294 $855,282 $37,299 $41,627 $154,460 $178,568
Ratio of expenses to
average net assets 1.78%*@ 1.76%@ 1.75%@ 1.76%@ 1.76%@ 1.41%
Ratio of net investment loss
to average net assets (1.49)%* (1.25)% (0.84)% (1.10)% (1.22)% (0.15)%
Decrease reflected in above
operating expense ratios
due to waivers/reimbursements 0.35%* 0.43% 0.81% 0.51% 0.29% 1.35%
Portfolio turnover rate 28.15% 249.79% 112.68% 100.60% 95.23% 82.98%
<FN>
--------------------------------------------------------------------------------
@ Interest earned on uninvested cash balances is used to offset portions of
the transfer agent expense. These arrangements resulted in a reduction to
the Common Class shares' expense ratio by .03% for the six months ended
April 30, 2000 and .01%, .00%, .01% and .01% for the years ending October
31, 1999, 1998, 1997 and 1996, respectively. The Common Class shares'
operating expense ratios after reflecting these arrangements were 1.75% for
the six months ended April 30, 2000 and for each of the years ended October
31, 1999, 1998, 1997 and 1996.
* Annualized.
+ Non-annualized.
</FN>
</TABLE>
See Accompanying Notes to Financial Statements.
13
<PAGE>
WARBURG PINCUS JAPAN FUNDS
NOTES TO FINANCIAL STATEMENTS
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
The Warburg Pincus Japan Growth Fund ("Japan Growth") and the Warburg Pincus
Japan Small Company Fund ("Japan Small Company"), each a Maryland Corporation,
are registered under the Investment Company Act of 1940, as amended (the "1940
Act"), as non-diversified, open-end management investment companies (each, a
"Fund" and collectively, the "Funds").
Investment objectives for each Fund are as follows: Japan Growth seeks
long-term growth of capital and Japan Small Company seeks long-term capital
appreciation.
Both Funds offer two classes of shares, one class being referred to as the
Common Class shares and one class being referred to as the Advisor Class shares.
Common and Advisor Class shares in each Fund represent an equal pro rata
interest in such Fund, except that they bear different expenses which reflect
the difference in the range of services provided to them. Common Class shares
for both Funds bear expenses paid pursuant to a shareholder servicing and
distribution plan adopted by each Fund at an annual rate of .25% of the average
daily net asset value of each Fund's outstanding Common Class shares. Advisor
Class shares for each Fund bear expenses paid pursuant to a distribution plan
adopted by each Fund at an annual rate not to exceed .75% of the average daily
net asset value of each Fund's Advisor Class shares. Advisor Class shares are
currently bearing expenses of .50% of average daily net assets.
The net asset value of each Fund is determined daily as of the close of
regular trading on the New York Stock Exchange. Each Fund's investments are
valued at market value, which is generally determined using the last reported
sales price. If no sales are reported, investments are generally valued at the
mean between the last reported bid and asked price. 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.
The books and records of the Funds are maintained in U.S. dollars.
Transactions denominated in foreign currencies are recorded at the current
prevailing exchange rates. All assets and liabilities denominated in foreign
currencies are translated into U.S. dollar amounts at the current exchange rate
at the end of the period. Translation gains or losses resulting from changes in
the exchange rate during the reporting period and realized gains and losses on
the settlement of foreign currency transactions are reported in the results of
operations for the current period. The Funds do not isolate that portion of
realized gains and losses on investments in equity securities which
14
<PAGE>
WARBURG PINCUS JAPAN FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES -- (CONT'D)
is due to changes in the foreign exchange rate from that which is due to changes
in market prices of equity securities. The Funds isolate that portion of
realized gains and losses on investments in debt securities which is due to
changes in the foreign exchange rate from that which is due to changes in market
prices of debt securities.
The Funds may invest in securities of foreign countries and governments which
involve certain risks in addition to those inherent in domestic investments.
Such risks generally include, among others, currency 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 investments in a single country, such as Japan, involves
increased 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. Income, expenses (excluding class-specific expenses,
principally distribution and shareholder servicing fees) and realized/unrealized
gains/losses are allocated proportionately to each class of shares based upon
the relative net asset value of outstanding shares. The cost of investments sold
is determined by use of the 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 for both Funds.
However, to the extent that a net realized capital gain can be reduced by a
capital loss carryover, such gain will not be distributed. Income and capital
gain distributions are determined in accordance with federal income tax
regulations which may differ from generally accepted accounting principles.
No provision is made for federal taxes, as it is each Fund's intention to
continue to qualify for and elect the tax treatment applicable to regulated
investment companies under the Internal Revenue Code of 1986, as amended (the
"Code"), and make the requisite distributions to its shareholders which will be
sufficient to relieve it from federal income and excise taxes.
15
<PAGE>
WARBURG PINCUS JAPAN FUNDS
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 Fund, along with other Funds advised by Credit Suisse Asset
Management, LLC ("CSAM"), can transfer uninvested cash balances to a pooled cash
account, which is invested in repurchase agreements secured by U.S. government
securities. Securities pledged as collateral for repurchase agreements are held
by the Funds' custodian bank until the agreements mature. Each agreement
requires that the market value of the collateral be sufficient to cover payments
of interest and principal; however, in the event of default or bankruptcy by the
other party to the agreement, retention of the collateral may be subject to
legal proceedings. At April 30, 2000 neither Fund was 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 statements and the reported amounts of revenues and expenses during
the reporting period. Actual results could differ from these estimates.
The Funds have an arrangement with their transfer agent whereby interest
earned on uninvested cash balances was used to offset a portion of their
transfer agent expense.
For the six months ended April 30, 2000, the Funds received credits or
reimbursements under this arrangement as follows:
FUND AMOUNT
---- --------
Japan Growth $ 92,371
Japan Small Company 122,346
2. INVESTMENT ADVISER, CO-ADMINISTRATOR AND DISTRIBUTOR
Pursuant to Investment Advisory Agreements, CSAM, an indirect, wholly-owned
subsidiary of Credit Suisse Group, serves as investment advisor for the Funds
described herein.
For it's investment advisory services, CSAM receives the following fees based
on each Fund's average daily net assets:
FUND ANNUAL RATE
------ ----------------------------------
Japan Growth 1.25% of average daily net assets
Japan Small Company 1.25% of average daily net assets
16
<PAGE>
WARBURG PINCUS JAPAN FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
2. INVESTMENT ADVISER, CO-ADMINISTRATORS AND DISTRIBUTOR -- (CONT'D)
For the six months ended April 30, 2000, investment advisory fees and
voluntary waivers were as follows:
GROSS NET
FUND ADVISORY FEE WAIVER ADVISORY FEE
---- ------------ ------- --------------
Japan Growth $4,060,309 $(1,528,142) $2,532,167
Japan Small Company 5,445,117 (1,505,969) 3,939,148
Counsellors Funds Service, Inc. ("CFSI"), a wholly-owned subsidiary of CSAM
served as co-administrator of each Fund until November 1, 1999. On November 1,
1999, Credit Suisse Asset Management Securities, Inc. ("CSAMSI") replaced CFSI
as co-administrator to each Fund. PFPC, Inc. ("PFPC"), an indirect subsidiary of
PNC Financial Services Group, Inc. ("PNC"), also serves as each Fund's
co-administrator. For its administrative services, CSAMSI currently receives a
fee calculated at an annual rate of .10% of each Fund's average daily net
assets. For the six months ended April 30, 2000, administrative services fees
earned by CSAMSI were as follows:
FUND CO-ADMINISTRATION FEE
---- ---------------------
Japan Growth $324,825
Japan Small Company 435,609
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 $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 services fees earned
by PFPC (including out of pocket expenses) were as follows:
FUND CO-ADMINISTRATION FEE
---- ---------------------------
Japan Growth $333,204
Japan Small Company 398,208
17
<PAGE>
WARBURG PINCUS JAPAN FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
2. INVESTMENT ADVISER, CO-ADMINISTRATORS AND DISTRIBUTOR -- (CONT'D)
CSAMSI served as distributor of each Fund's shares until January 1, 2000. On
January 1, 2000, Provident Distributors, Inc. ("PDI") replaced CSAMSI as
distributor to each Fund. No compensation is payable by any of the Funds to PDI
for distribution services. Pursuant to a distribution plan adopted by each Fund
pursuant to Rule 12b-1 under the 1940 Act, CSAMSI receives a fee for its selling
services. This fee is calculated at an annual rate of .25% and .50% of the
average daily net assets of each Fund's Common Class shares and Advisor Class
shares, respectively. CSAMSI may use this fee to compensate service
organizations for shareholder servicing and distribution services. For the six
months ended April 30, 2000, shareholder servicing and distribution fees were as
follows:
SHAREHOLDER SERVICING/
FUND DISTRIBUTION FEE
---- ---------------------------
Japan Growth
Common Class shares $ 804,420
Advisor Class shares 15,284
----------
$ 819,704
==========
Japan Small Company
Common Class shares $1,081,204
Advisor Class shares 15,639
----------
$1,096,843
==========
3. LINE OF CREDIT
The Funds, together with other Funds advised by CSAM, have established a $250
million committed, unsecured, line of credit facility ("Credit Facility") with
Deutsche Bank, AG as administrative agent, State Street Bank and Trust Company
as operations agent, Bank of Nova Scotia as syndication agent 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 and during the
six months ended April 30, 2000, the Funds had the following borrowings under
the Credit Facility:
18
<PAGE>
WARBURG PINCUS JAPAN FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
3. LINE OF CREDIT -- (CONT'D)
AVERAGE MAXIMUM LOAN
AVERAGE DAILY INTEREST DAILY LOAN OUTSTANDING
FUND LOAN BALANCE RATE % OUTSTANDING AT 04/30/2000
---- --------------- --------- ------------ -------------
Japan Growth $20,242,000 6.405% $146,214,000 $ --
Japan Small Company 38,719,797 6.371% 173,637,000 35,241,000
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:
FUND PURCHASES SALES
---- ------------ -------------
Japan Growth $523,521,105 $576,284,242
Japan Small Company 253,333,408 621,838,590
At April 30, 2000, the net unrealized appreciation from investments for those
securities having an excess of value over cost and net unrealized depreciation
from investments for those securities having an excess of cost over value (based
on cost for federal income tax purposes) was as follows:
UNREALIZED UNREALIZED NET UNREALIZED
FUND APPRECIATION DEPRECIATION APPRECIATION
---- -------------- ------------- --------------
Japan Growth $190,924,160 $(15,086,330) $175,837,830
Japan Small Company 249,254,366 (28,751,018) 220,503,850
5. FORWARD FOREIGN CURRENCY CONTRACTS
Each Fund may enter into forward currency contracts for the purchase or sale
of a specific foreign currency at a fixed price on a future date. Risks may
arise 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
Fund will enter into forward contracts primarily for hedging purposes. Forward
currency contracts are adjusted by the daily exchange rate of the underlying
currency and any gains or losses are recorded for financial statement purposes
as unrealized until the contract settlement date or the date on which an
offsetting position is entered into.
At April 30, 2000, Japan Growth and Japan Small Company had no open forward
foreign currency contracts.
19
<PAGE>
WARBURG PINCUS JAPAN FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
6. CAPITAL SHARE TRANSACTIONS
Both Funds are authorized to issue three billion full and fractional shares
of capital stock, $.001 par value per share, of which one billion shares of each
Fund are designated Common Class shares and two billion shares of each Fund are
designated Advisor Class shares.
Transactions in classes of each Fund were as follows:
<TABLE>
<CAPTION>
JAPAN GROWTH
--------------------------------------------------------------------------
COMMON CLASS SHARES ADVISOR CLASS SHARES
------------------------------------- ------------------------------
FOR THE FOR THE
SIX MONTHS FOR THE SIX MONTHS FOR THE
ENDED YEAR ENDED ENDED YEAR ENDED
APRIL 30, 2000 OCTOBER 31, APRIL 30, 2000 OCTOBER 31,
(UNAUDITED) 1999 (UNAUDITED) 1999
--------------- --------------- -------------- ------------
<S> <C> <C> <C> <C>
Shares sold 111,543,650 79,744,093 493,069 206,249
Shares issued to shareholders on reinvestment
of dividends and distributions 93,241 0 380 0
Shares redeemed (114,649,544) (62,797,016) (418,205) (69,146)
--------------- --------------- ------------ -----------
Net increase (decrease) in shares outstanding (3,012,653) 16,947,077 75,244 137,103
=============== =============== ============ ===========
Proceeds from sale of shares $ 3,152,253,889 $ 1,401,756,841 $ 14,711,619 $ 4,361,090
Reinvestment of dividends and distributions 2,648,972 0 10,747 0
Net asset value of shares redeemed (3,280,362,616) (1,108,802,345) (12,505,500) (1,451,720)
--------------- --------------- ------------ -----------
Net increase (decrease) from capital
share transactions $ (125,459,755) $ 292,954,496 $ 2,216,866 $ 2,909,370
=============== =============== ============ ===========
</TABLE>
<TABLE>
<CAPTION>
JAPAN SMALL COMPANY
--------------------------------------------------------------------------
COMMON CLASS SHARES ADVISOR CLASS SHARES
------------------------------------- ------------------------------
FOR THE FOR THE
SIX MONTHS FOR THE SIX MONTHS FOR THE
ENDED YEAR ENDED ENDED YEAR ENDED
APRIL 30, 2000 OCTOBER 31, APRIL 30, 2000 OCTOBER 31,
(UNAUDITED) 1999 (UNAUDITED) 1999
--------------- --------------- -------------- ------------
<S> <C> <C> <C> <C>
Shares sold 57,428,512 171,281,858 614,256 335,309
Shares issued to shareholders on reinvestment
of dividends and distributions 84,866 0 397 0
Shares redeemed (80,592,450) (132,021,198) (601,720) (152,747)
--------------- --------------- ------------ -----------
Net increase (decrease) in shares outstanding (23,079,072) 39,260,660 12,933 182,562
=============== =============== ============ ===========
Proceeds from sale of shares $ 1,291,116,577 $ 2,303,201,289 $ 13,550,151 $ 5,327,035
Reinvestment of dividends and distributions 1,944,289 0 9,131 0
Net asset value of shares redeemed,
net of redemption fees (1,795,599,218) (1,842,311,404) (13,376,062) (2,497,695)
--------------- --------------- ------------ -----------
Net increase (decrease) from capital
share transactions $ (502,538,352) $ 460,889,885 $ 183,220 $ 2,829,340
=============== =============== ============ ===========
</TABLE>
20
<PAGE>
WARBURG PINCUS JAPAN FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
6. CAPITAL SHARE TRANSACTIONS (CONT'D)
On March 20, 2000, the Board of Directors of the Warburg Pincus Japan Growth
Fund approved the imposition of a redemption fee plan, whereby 2% of the value
of shares redeemed or exchanged less than six months from the date of purchase
will be charged to shareholders. The Board also approved a plan whereby the
redemption fee currently imposed by the Japan Small Company Fund was increased
from 1% to 2%. These fees apply only to shares purchased on or after May 30,
2000 that are held for less than six months. Reinvested dividends and
distributions are not subject to the fee. The fee will be charged based on the
value of shares at redemption, and will be paid directly to the Fund and become
part of the Fund's daily net asset value calculation. When shares are redeemed
that are subject to the fee, reinvested dividends and distributions will be
redeemed first, followed by the shares held longest.
21
<PAGE>
WARBURG PINCUS JAPAN FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
7. OTHER FINANCIAL HIGHLIGHTS
Each Fund currently offers one other class of shares, the Advisor Class
shares, representing equal pro rata interests in each Fund. The financial
highlights for an Advisor Class share of each Fund are as follows:
<TABLE>
<CAPTION>
JAPAN GROWTH
----------------------------------------------------------------
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 $24.18 $ 8.71 $ 9.89 $ 9.83 $10.00
------ ------- ------- ------ ------
INVESTMENT ACTIVITIES:
Net investment income (loss) (0.23) (0.06) (0.11)(a) 0.05 (0.09)
Net gains (losses) on investments
and foreign currency related
items (both realized
and unrealized) (0.04) 15.53 (1.07) 0.01 (0.08)
------ ------- ------- ------ ------
Total from investment activities (0.27) 15.47 (1.18) 0.06 (0.17)
------ ------- ------- ------ ------
LESS DIVIDENDS AND DISTRIBUTIONS:
Distributions from net realized gains (0.11) 0.00 0.00 0.00 0.00
------ ------- ------- ------ ------
Total dividends and distributions (0.11) 0.00 0.00 0.00 0.00
------ ------- ------- ------ ------
NET ASSET VALUE, END OF PERIOD: $23.80 $ 24.18 $ 8.71 $ 9.89 $ 9.83
====== ======= ======= ====== ======
Total return (1.17)%+ 177.61% (11.93)% 0.61% (1.70)%+
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period (000s omitted) $5,113 $ 3,375 $ 22 $ 17 $ 1
Ratio of expenses to average net assets@ 2.03%* 2.01% 2.00% 2.00% 2.00%*
Ratio of net loss to average net assets (1.63)%* (1.55)% (1.11)% (1.42) (1.08)%*
Decrease reflected in above operating
expense ratios due to waivers/
reimbursements 0.53%* 0.54% 0.58% 7.25% 3.43%*
Portfolio turnover rate 80.39% 171.12% 75.82% 93.84% 51.72%
<FN>
--------------------------------------------------------------------------------
* Annualized.
(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 Advisor Class shares' expense ratio by .03% for the six months ended
April 30, 2000 and .01%, .00%, .00% and .00% for the years ending October
31, 1999, 1998, 1997 and for the period ending 1996, respectively. The
Advisor Class shares' operating expense ratios after reflecting these
arrangements were 2.00% for the six months ended April 30, 2000 and 2.00%
for each of the years ended October 31, 1999, 1998, 1997 and for the period
ending 1996.
+ Non annualized.
** For the period December 29, 1995 (commencement of operations) through
October 31, 1996.
</FN>
</TABLE>
22
<PAGE>
WARBURG PINCUS JAPAN FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
7. OTHER FINANCIAL HIGHLIGHTS -- (CONT'D)
<TABLE>
<CAPTION>
JAPAN SMALL COMPANY
----------------------------------------------------------------------
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 $18.66 $ 5.57 $ 6.37 $ 8.45 $ 9.08 $ 9.85
------ ------- ------- ------- ------ ------
INVESTMENT ACTIVITIES:
Net investment income (loss) (0.28) (0.06) (0.62) 0.35 (0.13) (0.02)
Net gains (losses) on investments
and foreign currency related
items (both realized and
unrealized) (0.48) 13.15 (0.06) (2.43) (0.14) (0.75)
Net gain due to deferred
contingent sales charge 0.21 0.00 0.00 0.00 0.00 0.00
------ ------- ------- ------- ------ ------
Total from investment activities (0.55) 13.09 (0.68) (2.08) (0.27) (0.77)
------ ------- ------- ------- ------ ------
LESS DIVIDENDS AND DISTRIBUTIONS:
Dividends from net investment
income 0.00 0.00 0.00 0.00 (0.36) 0.00
Distributions from net
realized gains (0.05) 0.00 (0.07) 0.00 0.00 0.00
Return of capital 0.00 0.00 (0.05) 0.00 0.00 0.00
------ ------- ------- ------- ------ ------
Total dividends and
distributions (0.05) 0.00 (0.12) 0.00 (0.36) 0.00
------ ------- ------- ------- ------ ------
NET ASSET VALUE, END OF PERIOD: $18.06 $ 18.66 $ 5.57 $ 6.37 $ 8.45 $ 9.08
====== ======= ======= ======= ====== ======
Total return (2.99)%+ 235.01% (10.63)% (24.62)% (3.17)% (7.82)%
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period
(000s omitted) $3,533 $ 3,410 $ 1 $ 3 $ 1 $ 1
Ratio of expenses to average
net assets 2.03%*@ 2.01%@ 2.01%@ 2.00%@ 2.01%@ 1.31%
Ratio of net loss to average
net assets (1.78)%* (1.53)% (1.18)% (1.10)% (1.57)% (.19)%
Decrease reflected in above
operating expense ratios
due to waivers/reimbursements 0.38%* 0.51% 22.81% 6.69% 0.28% 1.83%
Portfolio turnover rate 28.15% 249.79% 112.68% 100.60% 95.23% 82.98%
<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 Advisor Class shares' expenses ratio by .03% for the six months ended
April 30, 2000 and .01%, .01%, .00% and .01% for the years ending October
31, 1999, 1998, 1997 and 1996, respectively. TheAdvisor Class shares'
operating expense ratios after reflecting these arrangements were 2.00% for
the six months ended April 30, 2000 and 2.00% for each of the years ended
October 31, 1999, 1998, 1997 and 1996.
* Annualized.
+ Non-annualized.
</FN>
</TABLE>
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[GRAPHIC OMITTED]
WARBURG PINCUS FUNDS
PART OF CREDIT SUISSE ASSET MANAGEMENT
P.O. BOX 9030, BOSTON, MA 02205-9030
800-WARBURG (800-927-2874)(BULLET)www.warburg.com
PROVIDENT DISTRIBUTORS, INC., DISTRIBUTOR. WPJPN-3-0400
