[GRAPHIC OMITTED]
WARBURG PINCUS FUNDS
PART OF CREDIT SUISSE ASSET MANAGEMENT
SEMIANNUAL
REPORT
APRIL 30, 2000
(UNAUDITED)
WARBURG PINCUS
EMERGING MARKETS FUND
(INSTITUTIONAL CLASS)
More complete information about the Funds, including charges and expenses, is
provided in the PROSPECTUS, which must precede or accompany this document and
which should be read carefully before investing. You may obtain additional
copies by calling 800-222-8977 or by writing to Warburg Pincus Funds, P.O. Box
8500, Boston, MA 02266-8500.
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.
<PAGE>
FROM TIME TO TIME, THE FUNDS' INVESTMENT ADVISER AND CO-ADMINISTRATORS MAY WAIVE
SOME FEES AND/OR REIMBURSE SOME EXPENSES, WITHOUT WHICH PERFORMANCE WOULD BE
LOWER. WAIVERS AND/OR REIMBURSEMENTS ARE SUBJECT TO CHANGE.
RETURNS ARE HISTORICAL AND INCLUDE CHANGE IN SHARE PRICE AND REINVESTMENT OF
DIVIDENDS AND CAPITAL GAINS. PAST PERFORMANCE CANNOT GUARANTEE FUTURE RESULTS.
RETURNS AND SHARE PRICE WILL FLUCTUATE, AND REDEMPTION VALUE MAY BE MORE OR LESS
THAN ORIGINAL COST.
INTERNATIONAL INVESTING ENTAILS SPECIAL RISK CONSIDERATIONS, INCLUDING CURRENCY
FLUCTUATIONS, LOWER LIQUIDITY, ECONOMIC AND POLITICAL RISKS, AND DIFFERENCES IN
ACCOUNTING METHODS.
THE VIEWS OF THE FUNDS' MANAGEMENT ARE AS OF THE DATE OF THE LETTERS AND
PORTFOLIO HOLDINGS DESCRIBED IN THIS DOCUMENT ARE AS OF APRIL 30, 2000; THESE
VIEWS AND PORTFOLIO HOLDINGS MAY HAVE CHANGED SUBSEQUENT TO THESE DATES. NOTHING
IN THIS DOCUMENT IS A RECOMMENDATION TO PURCHASE OR SELL SECURITIES.
FUND SHARES ARE NOT DEPOSITS OR OTHER OBLIGATIONS OF CREDIT SUISSE ASSET
MANAGEMENT ("CSAM") OR ANY AFFILIATE, ARE NOT 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 EMERGING MARKETS FUND
SEMIANNUAL INVESTMENT ADVISER'S REPORT -- APRIL 30, 2000
--------------------------------------------------------------------------------
June 20, 2000
Dear Shareholder:
The Institutional Class shares of Warburg Pincus Emerging Markets Fund had a
loss of 20.41% for the period starting February 12, 2000 (the inception date of
the Fund's Institutional Class) and ending April 30, 2000. The Fund's
performance reflected a very difficult backdrop for emerging stock markets over
the 11-week period. The vast majority of these markets had solid gains in 1999,
but struggled early in 2000, hampered by bouts of profit-taking and by a sharp
downturn in rapid-growth and technology shares in April (a development that
prompted investors to favor less-risky asset classes in general, at least
temporarily).
While the commencement of the Fund's Institutional Class proved untimely, we
have a positive outlook on the longer-term prospects for emerging stock markets.
Our optimism is founded on several factors, not the least of which is projected
continued growth in the global economy, which stands to support corporate
earnings while easing risk concerns. We also believe that numerous emerging
market companies will continue to benefit from a strong and rising worldwide
outsourcing trend. As companies within developed markets seek to control costs,
they are likely to increasingly delegate non-core functions to emerging-market
companies across a range of industries. In addition, valuations on emerging
stock markets remain historically compelling compared to those on developed
markets, notwithstanding the healthy gains made by many emerging-market stocks
last year.
True, emerging stock markets will likely remain quite volatile over the short
term. The recent turmoil in technology-type stocks in particular could persist
for a spell, fueling frequent shifts in sentiment regarding riskier asset
classes. And 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). But all told, we see ample
grounds for optimism, with numerous emerging-market companies poised for revenue
and earnings improvements. 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.
1
<PAGE>
WARBURG PINCUS EMERGING MARKETS FUND
SCHEDULE OF INVESTMENTS--APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
------- -----
COMMON STOCKS (76.9%)
AUSTRALIA (0.0%)
OIL & GAS (0.0%)
Novus Petroleum, Ltd. 682 $ 557
-----------
TOTAL AUSTRALIA 557
-----------
BRAZIL (8.3%)
BANKS (0.9%)
Uniao de Bancos Brasileiros SA GDR 31,670 789,771
-----------
BEVERAGES (0.8%)
Companhia Cervejaria Brahma ADR 46,700 723,850
-----------
DIVERSIFIED TELECOMMUNICATION SERVICES (5.0%)
Embratel Participacoes SA ADR(DAGGER) 64,700 1,455,750
Tele Centro Sul Participacoes SA ADR 18,700 1,192,125
Tele Norte Leste Participacoes SA ADR 76,855 1,368,980
Telecommunications de Sao Paulo SA ADR 21,000 530,250
-----------
4,547,105
-----------
FOOD & DRUG RETAILING (0.9%)
Companhia Brasileira de Distribuicao Grupo Pao
de Acucar ADR 29,230 833,055
-----------
PAPER & FOREST PRODUCTS (0.7%)
Aracruz Celulose ADR 34,400 642,850
-----------
TOTAL BRAZIL 7,536,631
-----------
CHILE (1.4%)
DIVERSIFIED TELECOMMUNICATION SERVICES (1.4%)
Companhia de Telecomunicaciones de Chile SA ADR 70,300 1,300,550
-----------
TOTAL CHILE 1,300,550
-----------
CHINA (2.6%)
CHEMICALS (1.8%)
Yizheng Chemical Fibre Co., Ltd.(DAGGER) 8,570,000 1,661,411
-----------
ELECTRIC UTILITIES (0.8%)
Huaneng Power International, Inc. ADR 79,200 732,600
-----------
TOTAL CHINA 2,394,011
-----------
EGYPT (0.1%)
BANKS (0.1%)
Commercial International Bank, Ltd. 26 283
Mibbank International 5,410 90,782
-----------
91,065
-----------
TOTAL EGYPT 91,065
-----------
GREECE (0.5%)
DIVERSIFIED TELECOMMUNICATION SERVICES (0.5%)
Hellenic Telecommunication Organization
SA ADR(DAGGER) 39,601 462,837
-----------
TOTAL GREECE 462,837
-----------
See Accompanying Notes to Financial Statements.
2
<PAGE>
WARBURG PINCUS EMERGING MARKETS FUND
SCHEDULE OF INVESTMENTS (CONT'D)--APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
------- -----
COMMON STOCKS (CONT'D)
HONG KONG (5.9%)
COMPUTERS & PERIPHERALS (1.6%)
Legend Holdings, Ltd. 1,248,000 $ 1,450,049
-----------
DIVERSIFIED FINANCIALS (0.0%)
Beijing Enterprises Holding Co.(DAGGER) 11,100 12,113
-----------
HOUSEHOLD DURABLES (0.0%)
Guangdong Kelon Electrical Holdings Co., Ltd. 40,738 25,366
-----------
INTERNET SOFTWARE & SERVICES (0.3%)
Pacific Century Cyberworks, Ltd.(DAGGER) 163,000 303,442
-----------
PERSONAL PRODUCTS (0.0%)
Li & Fung, Ltd. 10,000 38,644
-----------
WIRELESS TELECOMMUNICATION SERVICES (4.0%)
China Telecommunications, Ltd. ADR 16,100 2,361,669
China Telecommunications, Ltd.(DAGGER) 176,000 1,271,026
-----------
3,632,695
-----------
TOTAL HONG KONG 5,462,309
-----------
HUNGARY (1.1%)
BANKS (0.3%)
OTP Bank 5,364 238,196
OTP Bank Rt. GDR 144A 1,400 62,169
-----------
300,365
-----------
DIVERSIFIED TELECOMMUNICATION SERVICES (0.6%)
Matav RT ADR 14,800 515,225
-----------
OIL & GAS (0.0%)
MOL Magyar Olaj - Es Gazipari 1,100 19,415
-----------
PHARMACEUTICALS (0.2%)
Gedeon Richter 3,000 166,500
-----------
TOTAL HUNGARY 1,001,505
-----------
INDIA (5.7%)
AUTOMOBILES (0.0%)
Mahindra & Mahindra, Ltd. 1,750 10,665
Mahindra & Mahindra, Ltd. GDR 2,000 13,500
-----------
24,165
-----------
BANKS (0.0%)
State Bank of India, Ltd. GDR 1,600 15,200
-----------
BEVERAGES (0.1%)
ITC Agro-Tech, Ltd. GDR(DAGGER) 2,200 37,510
-----------
See Accompanying Notes to Financial Statements.
3
<PAGE>
WARBURG PINCUS EMERGING MARKETS FUND
SCHEDULE OF INVESTMENTS (CONT'D)--APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
------- -----
COMMON STOCKS (CONT'D)
INDIA (cont'd)
CHEMICALS (0.2%)
Grasim Industries, Ltd. 500 $ 4,123
Reliance Industries, Ltd. 4,659 37,021
Reliance Industries, Ltd. GDR 4,304 112,012
-----------
153,156
-----------
DIVERSIFIED FINANCIALS (1.0%)
Icici, Ltd.(DAGGER) 34,600 877,975
Morgan Stanley India Investment Fund, Inc. 100 1,212
-----------
879,187
-----------
DIVERSIFIED TELECOMMUNICATION SERVICES (0.6%)
Videsh Sanchar Nigam, Ltd. 30,800 585,200
-----------
GAS UTILITIES (0.0%)
Gas Authority of India, Ltd. 2,400 15,600
-----------
INDUSTRIAL CONGLOMERATES (0.0%)
Larsen & Toubro, Ltd. GDR 1,800 24,750
Larsen & Toubro, Ltd. 2,093 11,195
-----------
35,945
-----------
INTERNET & SOFTWARE SERVICES (0.1%)
SSI, Ltd.(DAGGER) 8,400 73,500
-----------
IT CONSULTING & SERVICES (1.3%)
Aptech, Ltd. 27,730 1,156,049
-----------
METALS & MINING (0.1%)
Hindalco Industries, Ltd. 4,000 68,000
-----------
OIL & GAS (0.1%)
Hindustan Petroleum Corp., Ltd. 32,400 83,011
-----------
PHARMACEUTICALS (0.1%)
Ranbaxy Laboratories, Ltd. 2,800 53,410
-----------
SOFTWARE (2.1%)
Pentamedia Graphics, Ltd. 41,777 608,146
Satyam Computers 18,600 1,329,298
-----------
1,937,444
-----------
TOTAL INDIA 5,117,377
-----------
ISRAEL (0.5%)
IT CONSULTING & SERVICES (0.5%)
Check Point Software Technologies, Ltd. 2,536 438,728
-----------
TOTAL ISRAEL 438,728
-----------
See Accompanying Notes to Financial Statements.
4
<PAGE>
WARBURG PINCUS EMERGING MARKETS FUND
SCHEDULE OF INVESTMENTS (CONT'D)--APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
------- -----
COMMON STOCKS (CONT'D)
MALAYSIA (9.8%)
BANKS (2.5%)
Commerce Asset Holdings BHD 172,300 $ 485,172
Malayan Banking BHD 303,000 1,259,872
Public Bank 368,476 513,939
-----------
2,258,983
-----------
DIVERSIFIED FINANCIALS (0.5%)
AMMB Holdings Berhad 123,378 467,549
-----------
DIVERSIFIED TELECOMMUNICATION SERVICES (1.0%)
Telekom Malaysia Berhad 252,000 875,389
-----------
ELECTRIC UTILITIES (1.1%)
Tenaga Nasional BHD 309,000 1,024,603
-----------
HOTELS RESTAURANTS & LEISURE (3.7%)
Berjaya Sports Toto 181,000 378,680
Genting Berhad 154,440 621,839
Resorts World 417,000 1,349,795
Tanjong PLC 368,000 1,016,866
-----------
3,367,180
-----------
MEDIA (0.6%)
New Straits Times Press 165,278 552,390
-----------
SEMICONDUCTOR EQUIPMENT & PRODUCTS (0.4%)
Unisem (M) Berhad 39,100 347,278
-----------
TOTAL MALAYSIA 8,893,372
-----------
MEXICO (7.0%)
BANKS (0.5%)
Grupo Financiero Banamex Accival SA de CV 112,809 407,459
-----------
BEVERAGES (1.8%)
Coca-Cola Femsa SA ADR 4,063 75,419
Fomento Economico Mexicano SA de CV ADR(DAGGER) 36,400 1,501,500
Grupo Modelo SA de CV Class C 24,284 51,596
-----------
1,628,515
-----------
CONSTRUCTION MATERIALS (0.9%)
Cemex SA de CV ADR(DAGGER) 38,730 847,219
-----------
DIVERSIFIED TELECOMMUNICATION SERVICES (2.7%)
Carso Global Telecom SA 164,872 437,874
Telefonos de Mexico SA ADR 33,600 1,976,100
-----------
2,413,974
-----------
MEDIA (0.1%)
Grupo Televisa SA 2,000 126,875
-----------
MULTILINE RETAIL (0.1%)
Wal-Mart de Mexico SA de CV 4,600 106,531
-----------
See Accompanying Notes to Financial Statements.
5
<PAGE>
WARBURG PINCUS EMERGING MARKETS FUND
SCHEDULE OF INVESTMENTS (CONT'D)--APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
------- -----
COMMON STOCKS (CONT'D)
MEXICO (cont'd)
PAPER & FOREST PRODUCTS (0.1%)
Kimberly-Clark de Mexico SA de CV Class A 13,417 $ 43,188
-----------
WIRELESS TELECOMMUNICATION SERVICES (0.8%)
Grupo Iusacell SA ADR Series V(DAGGER) 46,727 744,712
-----------
TOTAL MEXICO 6,318,473
-----------
RUSSIA (1.2%)
ELECTRIC UTILITIES (0.3%)
Unified Energy Systems ADR 15,700 292,648
-----------
OIL & GAS (0.9%)
Lukoil Holding ADR 7,300 440,044
Surgutneftegaz ADR 22,300 338,402
-----------
778,446
-----------
TOTAL RUSSIA 1,071,094
-----------
SINGAPORE (0.0%)
BANKS (0.0%)
Overseas Chinese Banking Corp., Ltd. 242 1,658
-----------
MEDIA (0.0%)
Singapore Press Holdings, Ltd. 39 763
-----------
TOTAL SINGAPORE 2,421
-----------
SOUTH AFRICA (6.1%)
BANKS (0.5%)
African Bank Investments, Ltd. 221,300 478,229
Standard Bank Investment Corp., Ltd. 1,300 4,794
-----------
483,023
-----------
BEVERAGES (0.2%)
South African Breweries PLC 18,791 138,592
-----------
DIVERSIFIED FINANCIALS (1.4%)
Johnnies Industrial Corp., Ltd. 22,994 339,181
Rembrant Group, Ltd. 114,700 889,951
-----------
1,229,132
-----------
HOUSEHOLD DURABLES (0.0%)
JD Group, Ltd. 400 2,696
-----------
INDUSTRIAL CONGLOMERATES (0.8%)
Imperial Holdings, Ltd. 86,904 743,507
-----------
INSURANCE (1.2%)
Liberty Life Association of Africa, Ltd. 139 1,302
Sanlam, Ltd.(DAGGER) 930,008 1,104,332
-----------
1,105,634
-----------
See Accompanying Notes to Financial Statements.
6
<PAGE>
WARBURG PINCUS EMERGING MARKETS FUND
SCHEDULE OF INVESTMENTS (CONT'D)--APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
------- -----
COMMON STOCKS (CONT'D)
SOUTH AFRICA (cont'd)
IT CONSULTING & SERVICES (0.5%)
Comparex Holdings, Ltd. 10,700 $ 16,020
Dimension Data Holdings, Ltd.(DAGGER) 61,093 401,022
-----------
417,042
-----------
METALS & MINING (0.3%)
Impala Platinum Holdings Ltd. 8,900 282,258
-----------
PAPER & FOREST PRODUCTS (1.2%)
Sappi, Ltd.(DAGGER) 153,482 1,075,395
-----------
TOTAL SOUTH AFRICA 5,477,279
-----------
SOUTH KOREA (10.1%)
BANKS (1.0%)
Housing & Commercial Bank of Korea GDR# 1,827 31,470
Housing & Commercial Bank of Korea 49,005 839,040
-----------
870,510
-----------
BEVERAGES (0.0%)
Hite Brewery Co., Ltd. 2 57
-----------
CHEMICALS (1.0%)
LG Chemical, Ltd. 38,000 873,197
-----------
CONSTRUCTION & ENGINEERING (0.1%)
Daelim Industrial Co., Ltd. 13,952 77,824
-----------
DIVERSIFIED TELECOMMUNICATION SERVICES (1.4%)
Dacom Corp. 1,700 246,640
Korea Telecom Corp.(DAGGER) 14,000 956,282
Korea Telecom Corp. ADR(DAGGER) 1,800 62,100
-----------
1,265,022
-----------
ELECTRIC UTILITIES (1.4%)
Korea Electric Power Corp. 41,000 1,200,759
Korea Electric Power Corp. ADR 2,600 42,575
-----------
1,243,334
-----------
HOUSEHOLD DURABLES (0.6%)
LG Electronics 19,944 531,977
LG Electronics GDR 2,400 32,100
-----------
564,077
-----------
MEDIA (0.5%)
Cheil Communications, Inc. 3,954 415,099
-----------
METALS & MINING (0.9%)
Pohang Iron & Steel Co., Ltd. 10,000 799,782
Pohang Iron & Steel Co., Ltd. ADR 1,100 23,100
-----------
822,882
-----------
See Accompanying Notes to Financial Statements.
7
<PAGE>
WARBURG PINCUS EMERGING MARKETS FUND
SCHEDULE OF INVESTMENTS (CONT'D)--APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
------- -----
COMMON STOCKS (CONT'D)
SOUTH KOREA (cont'd)
SEMICONDUCTOR EQUIPMENT & PRODUCTS (2.3%)
Samsung Electronics Co., Ltd. 7,747 $ 2,094,322
-----------
WIRELESS TELECOMMUNICATION SERVICES (0.9%)
Sk Telecom Co., Ltd. 3,040 808,136
-----------
TOTAL SOUTH KOREA 9,034,460
-----------
TAIWAN (9.7%)
INTERNET SOFTWARE & SERVICES (0.5%)
GigaMedia, Ltd. 17,600 422,400
-----------
SEMICONDUCTOR EQUIPMENT & PRODUCTS (9.2%)
Hon Hai Precision Industry Co., Ltd. ADR 2,900 80,982
Macronix International Co., Ltd. ADR 46,000 1,405,875
Taiwan Semiconductor Manufacturing
Co., Ltd.(DAGGER) 312,310 2,009,338
Taiwan Semiconductor Manufacturing
Co., Ltd. ADR(DAGGER) 44,700 2,338,369
United Microelectronics Co., Ltd.(DAGGER) 731,350 2,472,103
-----------
8,306,667
-----------
TOTAL TAIWAN 8,729,067
-----------
THAILAND (0.5%)
WIRELESS TELECOMMUNICATION SERVICES (0.5%)
Advanced Information Service Public Co., Ltd. 38,391 449,597
-----------
TOTAL THAILAND 449,597
-----------
TURKEY (6.4%)
BANKS (3.5%)
Dogan Yayin Holding AS 46,402,494 1,120,575
Yapi Ve Kredi Bankasi AS 63,776,184 2,036,108
-----------
3,156,683
-----------
DIVERSIFIED FINANCIALS (2.3%)
Koc Holding AS 4,120,083 826,323
Turkiye Is Bankasi AS Class C 23,070,000 1,265,319
-----------
2,091,642
-----------
FOOD & DRUG RETAILING (0.6%)
Migros Turkey TAS 797,940 542,158
-----------
TOTAL TURKEY 5,790,483
-----------
TOTAL COMMON STOCKS (Cost $63,780,589) 69,571,816
-----------
See Accompanying Notes to Financial Statements.
8
<PAGE>
WARBURG PINCUS EMERGING MARKETS FUND
SCHEDULE OF INVESTMENTS (CONT'D)--APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
------- -----
PREFERRED STOCKS (5.9%)
BRAZIL (4.8%)
BANKS (0.7%)
Banco Itau SA 8,677,286 $ 649,191
-----------
OIL & GAS (2.6%)
Petroleo Brasileiro SA 10,133,220 2,415,305
-----------
METALS & MINING (1.5%)
Companhia Vale do Rio Doce Class A 53,484 1,324,910
-----------
TOTAL BRAZIL 4,389,406
-----------
TAIWAN (0.1%)
BANKS (0.1%)
Taishin International Bank(DAGGER) 306,735 98,173
-----------
TOTAL TAIWAN 98,173
-----------
THAILAND (1.0%)
BANKS (1.0%)
Siam Commercial Bank Public Co., Ltd.(DAGGER) 1,077,012 862,541
-----------
TOTAL THAILAND 862,541
-----------
TOTAL PREFERRED STOCKS (Cost $4,472,828) 5,350,120
-----------
RIGHTS (0.0%)
THAILAND (0.0%)
DIVERSIFIED TELECOMMUNICATION SERVICES (0.0%)
Telecomasia Corp. Public Co., Ltd.(DAGGER) 191,873 0
-----------
TOTAL THAILAND 0
-----------
TOTAL RIGHTS (Cost $0) 0
-----------
SHORT-TERM INVESTMENTS (8.7%)
Institutional Money Market Trust 3,594,871 3,594,871
RBB Select Sweep 4,266,569 4,266,569
-----------
TOTAL SHORT-TERM INVESTMENTS (Cost $7,861,440) 7,861,440
-----------
TOTAL INVESTMENTS AT VALUE (91.5%) (Cost $76,114,857*) 82,783,376
OTHER ASSETS IN EXCESS OF LIABILITIES (8.5%) 7,734,907
-----------
NET ASSETS (100.0%) $90,518,283
===========
INVESTMENT ABBREVIATIONS
ADR = American Depository Receipt
GDR = Global Depository Receipt
--------------------------------------------------------------------------------
+ Non-income producing security.
* Cost for federal income tax purposes is $76,132,456.
# Restricted security.
See Accompanying Notes to Financial Statements.
9
<PAGE>
WARBURG PINCUS EMERGING MARKETS FUND
STATEMENT OF ASSETS AND LIABILITIES
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
ASSETS
Investments, at value (Cost - $76,114,857) $ 82,783,376
Foreign currency (Cost - $6,745,871) 6,743,711
Receivable for investments sold 1,473,362
Receivable for Fund shares sold 1,155,964
Dividends, interest and reclaim receivable 203,541
Prepaid expenses and other assets 72,324
Cash 2,252
Receivable from investment adviser 829
------------
Total Assets 92,435,359
------------
LIABILITIES
Advisory fee payable 23,434
Administrative services fee payable 3,528
Payable for investments purchased 438,994
Accrued expenses payable 87,202
Deferred capital gains taxes 1,356,275
Other liabilities 7,643
------------
Total Liabilities 1,917,076
------------
NET ASSETS
Capital stock, $0.001 par value 120,126
Paid-in capital 120,006,279
Accumulated net realized loss from security transactions and
foreign currency related items (33,772,660)
Net unrealized appreciation from investments and
foreign currency related items 4,164,538
------------
Net Assets $ 90,518,283
============
COMMON SHARES
Net assets $ 85,540,044
------------
Shares outstanding 7,541,811
------------
Net asset value, offering price and redemption price per share $ 11.34
============
ADVISOR SHARES
Net assets $ 85,898
------------
Shares outstanding 7,780
------------
Net asset value, offering price and redemption price per share $ 11.04
============
INSTITUTIONAL SHARES
Net assets $ 4,892,341
-------------
Shares outstanding 430,958
-------------
Net asset value, offering price and redemption price per share $ 11.35
=============
See Accompanying Notes to Financial Statements.
10
<PAGE>
WARBURG PINCUS EMERGING MARKETS FUND
STATEMENT OF OPERATIONS
For the Six Months Ended April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
INVESTMENT INCOME:
Dividends $ 908,378
Interest 138,881
Foriegn Taxes Withheld (75,176)
-----------
Total investment income 972,083
-----------
EXPENSES:
Investment advisory fees 629,283
Administrative services fees 38,323
Shareholder servicing/distribution fees 122,934
Administration and accounting fees 67,476
Interest expense 67,366
Custodian/Sub-custodian fees 67,224
Transfer agent fees 64,121
Registration fees 30,294
Printing fees 25,542
Legal fees 12,789
Audit fees 5,850
Directors fees 5,765
Offering/Organizational costs 1,986
Insurance expense 374
Miscellaneous expense 371
-----------
1,139,698
Less: fees waived and transfer agent offsets (312,571)
-----------
Total expenses 827,127
-----------
Net investment income 144,956
-----------
NET REALIZED AND UNREALIZED LOSS FROM INVESTMENTS AND
FOREIGN CURRENCY RELATED ITEMS:
Net realized gain from security and other
related transactions 25,604,602
Net realized loss from foreign currency related items (285,636)
Net change in unrealized appreciation
(depreciation) from investments (4,064,928)
Net change in unrealized appreciation (depreciation) from
foreign currency related items (2,412,895)
-----------
Net realized and unrealized gain from investments and
foreign currency related items 18,841,143
-----------
Net increase in net assets resulting from operations $18,986,099
===========
See Accompanying Notes to Financial Statements.
11
<PAGE>
WARBURG PINCUS EMERGING MARKETS FUND
STATEMENT OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE
SIX MONTHS
ENDED FOR THE
APRIL 30, 2000 YEAR ENDED
(UNAUDITED) OCTOBER 31, 1999
--------------- ----------------
<S> <C> <C>
FROM OPERATIONS:
Net investment income $ 144,956 $ 361,573
Net realized gain from security and other related transactions
(net of capital gains taxes of $940,534 for Emerging Markets) 25,604,602 3,365,256
Net realized loss from foreign currency related items (285,636) (759,014)
Net change in unrealized appreciation (depreciation)
from investments (4,064,928) 20,175,686
Net change in unrealized appreciation (depreciation) from
foreign currency related items (net of estimated deferred
capital gains taxes of $1,134,403 for Emerging Markets) (2,412,895) (86,198)
------------- -------------
Net increase in net assets resulting from operations 18,986,099 23,057,303
------------- -------------
FROM CAPITAL SHARE TRANSACTIONS:
Proceeds from sale of shares 215,610,179 164,611,366
Net asset value of shares redeemed (211,902,722) (180,058,486)
------------- -------------
Net increase (decrease) in net assets from capital share transactions 3,707,457 (15,447,120)
------------- -------------
Net increase in net assets 22,693,556 7,610,183
NET ASSETS:
Beginning of period 67,824,727 60,214,544
------------- -------------
End of period $ 90,518,283 $ 67,824,727
============= =============
UNDISTRIBUTED NET INVESTMENT INCOME: $ 0 $ 0
============= =============
</TABLE>
See Accompanying Notes to Financial Statements.
12
<PAGE>
WARBURG PINCUS EMERGING MARKETS FUND
FINANCIAL HIGHLIGHTS
(For an Institutional Class share of the Fund Outstanding Throughout Each
Period)
--------------------------------------------------------------------------------
FEBRUARY 12, 2000
(COMMENCEMENT
OF OPERATIONS)
THROUGH APRIL 30, 2000
(UNAUDITED)
----------------------
PER-SHARE DATA
Net asset value, beginning of period $14.26
------
INVESTMENT ACTIVITIES:
Net investment loss (0.04)
Net loss on investments and foreign currency
related items (both realized and unrealized) (2.87)
------
Total from investment activities (2.91)
------
NET ASSET VALUE, END OF PERIOD $11.35
======
Total return (20.41)%+
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s omitted) $4,892
Ratio of expenses to average net assets 1.35%*
Ratio of net loss to average net assets (4.04)%*
Decrease reflected in above operating expense ratios
due to waivers/reimbursements .26%*
Portfolio turnover rate 117.51%
--------------------------------------------------------------------------------
+ Non annualized.
* Annualized.
See Accompanying Notes to Financial Statements.
13
<PAGE>
WARBURG PINCUS EMERGING MARKETS FUND
NOTES TO FINANCIAL STATEMENTS
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
The Warburg Pincus Emerging Markets Fund (the "Fund"), a Maryland
Corporation, is registered under the 1940 Act as a non-diversified, open-end
management investment company.
The Investment objective for the Fund is to seek growth of capital.
Emerging Markets offers three classes of shares, one class being referred to
as the Common Class, one class being referred to as the Advisor Class, and one
class being referred to as the Institutional Class. Common, Advisor, and
Institutional shares of the Fund represent an equal pro rata interest in the
Fund, except that they bear different expenses which reflect the difference in
the range of services provided to them. Common Class shares for the Fund bear
expenses paid pursuant to a shareholder servicing and distribution plan at an
annual rate of .25% of the average daily net asset value of each Fund's Common
Class shares. Institutional Class shares of the Fund are not subject to
shareholder servicing or distribution fees. Advisor Class shares bear expenses
paid pursuant to a distribution plan at an annual rate not to exceed. .75% of
the average daily net asset value of the Fund's Advisor Class shares. Advisor
Class shares are currently bearing expenses of .50% of average daily net assets.
The net asset value of the Fund is determined daily as of the close of
regular trading on the New York Stock Exchange. The Fund's investments are
valued at market value, which is generally determined using the last reported
sales price. If no sales are reported, investments are generally valued at the
mean between the last reported bid and asked prices. If market quotations are
not readily available, securities and other assets are valued by another method
that the Board of Directors believes accurately reflects fairvalue. Debt
obligations that will mature in 60 days or less are valued on the basis of
amortized cost, which approximates market value, unless the Board determines
that using this method would not reflect an investment's value.
When the Fund writes or purchases a call or a put option, an amount equal to
the premium received or paid by the Fund is recorded as a liability or asset,
the value of which is marked-to-market daily to reflect the current market value
of the option. When the option expires, the Fund realizes a gain or loss equal
to the amount of the premium received or paid. When the Fund exercises an option
or enters into a closing transaction by purchasing or
14
<PAGE>
WARBURG PINCUS EMERGING MARKETS FUND
NOTES TO FINANCIAL STATEMENTS (CONT'D)
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES -- (CONT'D)
selling an offsetting option, it realizes a gain or loss without regard to any
unrealized gain or loss on the underlying security. The potential loss
associated with purchasing an option is limited to the premium paid, and the
premium would partially offset any gains achieved from its use.
The books and records of the Fund 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 Fund does 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 Fund isolates 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 Fund may invest in securities of foreign countries and governments which
involve certain risks in addition to those inherent in domestic investments.
Such risks generally include, among others, currency risks (fluctuations in
currency exchange rates), information risk (key information may be inaccurate or
unavailable) and political risk (expropriation, nationalization or the
imposition of capital or currency controls or punitive taxes). Other risks of
investing in foreign securities include liquidity and valuation risks.
The Fund's investments in securities of issuers located in less developed
countries considered to be "emerging markets" involve risks in addition to those
generally applicable to foreign securities. Focusing on emerging (less
developed) markets involves higher levels of risk, including increased currency,
information, liquidity, market, political and valuation risks. Deficiencies in
regulatory oversight, market infrastructure, shareholder protections and company
laws could expose the Fund to operational and other risks as well. Some
countries may have restrictions that could limit the Funds' access to attractive
opportunities. Additionally, emerging markets often face serious economic
problems (such as high external debt, inflation and unemployment) that could
subject the Fund to increased volatility or substantial declines in value.
15
<PAGE>
WARBURG PINCUS EMERGING MARKETS FUND
NOTES TO FINANCIAL STATEMENTS (CONT'D)
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES -- (CONT'D)
Security transactions are accounted for on a trade date basis. Interest
income is recorded on the accrual basis. Dividends are recorded on the
ex-dividend date. Income, expenses (excluding class-specific expenses,
principally distribution and shareholder servicing fees) and realized/unrealized
gains/losses are allocated proportionately to each class of shares based upon
the relative net asset value of outstanding shares. Effective November 1, 1998,
class specific expenses no longer include transfer agent fees; accordingly these
fees will be allocated proportionately based upon the relative net asset value
of outstanding shares. The cost of investments sold is determined by use of the
specific identification method for both financial reporting and income tax
purposes.
The Fund may enter into forward currency contracts for the purchase or sale
of a specific foreign currency at a fixed price on a future date. Risks may
arise upon entering into these contracts for the potential inability of
counterparties to meet the terms of their contracts and from unanticipated
movements in the value of a foreign currency relative to the U.S. dollar. The
Fund will enter into forward foreign currency contracts primarily for hedging
purposes. Forward foreign currency contracts are adjusted by the daily exchange
rate of the underlying currency and any gains or losses are recorded for
financial statement purposes as unrealized until the contract settlement date or
an offsetting position is entered into. At April 30, 2000, the Fund had no open
forward foreign currency contracts.
Dividends from net investment income and distributions of net realized
capital gains, if any, are declared and paid at least annually for the Fund.
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
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 Fund 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 Fund accrues such
taxes when the related income or capital gains are earned.
16
<PAGE>
WARBURG PINCUS EMERGING MARKETS FUND
NOTES TO FINANCIAL STATEMENTS (CONT'D)
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES -- (CONT'D)
Costs incurred in connection with organization and offering of shares have
been deferred and are being amortized over a period of five years and one year,
respectively, from the date each Fund commenced its operations.
Pursuant to an Exemptive Order issued by the Securities and Exchange
Commission, the Fund, along with other Funds advised by Credit Suisse Asset
Management, LLC, the Funds' investment adviser ("CSAM"), may transfer uninvested
cash balances to a pooled cash account, which is invested in repurchase
agreements secured by U.S. government securities. Securities pledged as
collateral for repurchase agreements are held by the Fund's custodian bank until
the agreements mature. Each agreement requires that the market value of the
collateral be sufficient to cover payments of interest and principal; however,
in the event of default or bankruptcy by the other party to the agreement,
retention of the collateral may be subject to legal proceedings. At April 30,
2000, the Fund had no investments in repurchase agreements.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses during
the reporting period. Actual results could differ from these estimates.
The Fund has an arrangement with their transfer agent whereby interest earned
on uninvested cash balances is used to offset a portion of the transfer agent
expense.
For the six months ended April 30, 2000, the Fund received credits or
reimbursements under this arrangement in the amount of $13,493.
2. INVESTMENT ADVISER, CO-ADMINISTRATORS AND DISTRIBUTOR
CSAM serves as the Fund's investment advisor. For its investment advisory
services, CSAM receives a fee of 1.25% of the Fund's average daily net assets.
For the six months ended April 30, 2000, investment advisory fees and waivers
were:
GROSS NET
ADVISORY FEE WAIVER ADVISORY FEE
------------ ---------- ------------
$629,283 $(312,571) $316,712
17
<PAGE>
WARBURG PINCUS EMERGING MARKETS FUND
NOTES TO FINANCIAL STATEMENTS (CONT'D)
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
2. INVESTMENT ADVISER, CO-ADMINISTRATORS AND DISTRIBUTOR -- (CONT'D)
Credit Suisse Asset Management Securities, Inc. ("CSAMSI") a wholly-owned
subsidiary of CSAM, and PFPC Inc. ("PFPC"), an indirect, wholly-owned subsidiary
of PNC Financial Services Group ("PNC"), serve as the Fund's co-administrators.
For its administrative services, CSAMSI currently receives a fee calculated at
an annual rate of .10% of the Fund's average daily net assets.
For the six months ended April 30, 2000, administrative services fees earned
by CSAMSI amounted to $38,323.
For administrative services, PFPC currently receives a fee calculated at an
annual rate of .12% on the Fund's first $250 million in average daily net
assets, .10% on the next $250 million in average daily net assets, .08% on the
next $250 million in average daily net assets and .05% of the average daily net
assets over $750 million, exclusive of out-of-pocket expenses.
For the six months ended April 30, 2000, administrative service fees earned
and voluntarily waived by PFPC (including out of pocket expenses) amounted to
$67,476.
CSAMSI served as distributor of the 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 the Fund to PDI for
distribution services. Pursuant to a distribution plan adopted by the Fund
pursuant to Rule 12b-1 under the 1940 Act, CSAMSI receives a fee for its selling
services. This fee is calculated at an annual rate of .25% of the average daily
net assets of the Common Class shares of the Fund and at an annual rate of .50%
of the Advisor Class shares of the Fund. 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 paid to CSAMSI were as follows:
SHAREHOLDER SERVICING
DISTRIBUTION FEE
--------------------
Common Class shares $122,742
Advisor Class shares 192
--------
$122,934
========
18
<PAGE>
WARBURG PINCUS EMERGING MARKETS FUND
NOTES TO FINANCIAL STATEMENTS (CONT'D)
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
3. LINE OF CREDIT
The Fund, together with other Funds advised by CSAM, has established a $250
million committed, unsecured, line of credit facility ("Credit Facility") with
Deutsche Bank AG as administrative agent, State Street Bank and Trust Company as
operations agent, Bank of Nova Scotia as syndication agent as well as certain
other lenders, for temporary or emergency purposes primarily relating to
unanticipated Fund share redemptions. Under the terms of the Credit Facility,
the Fund with access to the Credit Facility pays an aggregate commitment fee at
a rate of .075% per annum on the average daily balance of the Credit Facility
that is undisbursed and uncanceled during the preceding quarter allocated among
the participating Funds in such manner as is determined by the governing Boards
of the various Funds. In addition, the participating Funds will pay interest on
borrowing at the Federal funds rate plus .50%. At April 30, 2000, there were no
loans outstanding for the Fund. During the six months ended April 30, 2000, the
Fund had the following borrowings under the Credit Facility:
AVERAGE MAXIMUM
AVERAGE DAILY INTEREST DAILY LOAN
LOAN BALANCE RATE % OUTSTANDING
--------------- -------- -------------
$1,095,521 6.449% $13,366,000
4. INVESTMENTS IN SECURITIES
For the six months ended April 30, 2000, purchases and sales of investment
securities (excluding short-term investments) were $107,020,324 and
$121,503,589, respectively.
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
APPRECIATION DEPRECIATION APPRECIATION
-------------- -------------- --------------
$14,596,194 $(7,947,434) $6,648,760
19
<PAGE>
WARBURG PINCUS EMERGING MARKETS FUND
NOTES TO FINANCIAL STATEMENTS (CONT'D)
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
5. CAPITAL SHARE TRANSACTIONS
The Fund is authorized to issue three billion full and fractional shares of
capital stock, $.001 par value per share, of which one billion are classified as
Common shares, one billion are classified as Advisor shares, and one billion are
classified as Institutional shares. Transactions in the classes of the Fund were
as follows:
<TABLE>
<CAPTION>
INSTITUTIONAL
COMMON CLASS SHARES ADVISOR CLASS SHARES CLASS SHARES
------------------------------- ---------------------------- --------------
FOR THE FOR THE FOR THE
SIX MONTHS FOR THE SIX MONTHS FOR THE SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED ENDED
APRIL 30, 2000 OCTOBER 31, APRIL 30, 2000 OCTOBER 31, APRIL 30, 2000
(UNAUDITED) 1999 (UNAUDITED) 1999 (UNAUDITED)
--------------- -------------- ------------- ------------ --------------
<S> <C> <C> <C> <C> <C>
Shares sold 16,950,216 20,639,374 15,789 3,005 436,578
Shares redeemed (16,721,024) (22,454,708) 12,663 (2,367) (5,620)
------------- ------------- --------- -------- ----------
Net increase (decrease) in
shares outstanding 229,192 (1,815,334) 3,126 638 430,958
============= ============= ========= ======== ==========
Proceeds from sale of shares $ 209,187,646 $ 164,584,361 $ 202,387 $ 27,005 $6,220,146
Net asset value of shares redeemed (211,665,538) (180,042,232) (162,368) (16,254) (74,816)
------------- ------------- --------- -------- ----------
Net increase (decrease) from capital
share transactions $ (2,477,892) $ (15,457,871) $ 40,019 $ 10,751 $6,145,330
============= ============= ========= ======== ==========
</TABLE>
6. SHAREHOLDER MEETING RESULTS
A special meeting of shareholders of Warburg, Pincus Emerging Markets II
Fund, Inc. (the "EM II Fund") was held on February 10, 2000. The following
matter was voted upon by the shareholders and the resulting votes are presented
below.
To approve the Agreement and Plan of Reorganization, dated December 1, 1999
and amended as of January 27, 2000, providing that (1) the EM II Fund would
transfer to Warburg, Pincus Emerging Markets Fund, Inc. (the "EM Fund") all or
substantially all of the EMIIFund's assets in exchange for shares of the EM Fund
and the assumption by the EM Fund of the EM II Fund's liabilities, (2) such
shares of the EM Fund would be distributed to the shareholders of the EM II Fund
in liquidation of the EM II Fund, and (3) the EM II Fund would be subsequently
terminated.
For 247,793.230 shares (52.61%)
Against 361.000 shares (0.07%)
Abstain 928.000 shares (0.20%)
The Agreement and Plan of Reorganization was subsequently implemented as of
the close of business February 11, 2000.
20
<PAGE>
WARBURG PINCUS EMERGING MARKETS FUND
NOTES TO FINANCIAL STATEMENTS (CONT'D)
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
7. NET ASSETS
At April 30, 2000, capital contributions, undistributed net investment
income, accumulated net realized gain (loss) from security transactions and
current period dividends and distributions have been adjusted for current period
permanent book/tax differences which arose principally from differing book/tax
treatments of foreign currency, and foreign taxes on capital gains. The Fund
reclassified ($285,636), from undistributed net investment loss to accumulated
net realized gain on security transactions and foreign currency related items.
The Fund reclassified $1,081,214, from accumulated net investment loss to
capital contributions. The Fund reclassified $940,534 from accumulated net
realized gain from security transactions to ordinary income. Net investment
income, net realized gain (loss) or investments and net assets were not affected
by these reclassifications.
8. CAPITAL LOSS CARRYOVER
At April 30, 2000, capital loss carryovers available to offset possible
future capital gains of the Fund were $59,603,866.
9. OTHER FINANCIAL HIGHLIGHTS
The Fund offers three classes of shares, one class being referred to as the
Common Class, one class being referred to as the Advisor Class, and one class
being referred to as the Institutional Class. Common, Advisor, and Institutional
shares in the Fund represent an equal pro rata interest in the Fund. The
financial highlights for a Common Class share of the Fund as well as the
financial highlights for an Advisor Class share of the Fund are as follows:
21
<PAGE>
WARBURG PINCUS EMERGING MARKETS FUND
NOTES TO FINANCIAL STATEMENTS (CONT'D)
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
9. OTHER FINANCIAL HIGHLIGHTS -- (CONT'D)
<TABLE>
<CAPTION>
EMERGING MARKETS
--------------------------------------------------------------------------------------
COMMON CLASS
--------------------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE YEAR ENDED OCTOBER 31,
APRIL 30, 2000 ---------------------------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995**
------------ -------- ------- -------- -------- -------
<S> <C> <C> <C> <C> <C> <C>
PER-SHARE DATA
Net asset value,
beginning of period $ 9.27 $ 6.59 $ 10.82 $ 12.19 $ 11.28 $ 10.00
------- ------- ------- -------- -------- -------
INVESTMENT ACTIVITIES:
Net investment income (loss) (0.10) 0.05 0.11 0.04 0.07 0.08
Net gains (losses) on
investments and foreign
currency related items (both
realized and unrealized) 2.17 2.63 (3.86) (1.34) 0.99 1.25
------- ------- ------- -------- -------- -------
Total from investment
activities 2.07 2.68 (3.75) (1.30) 1.06 1.33
------- ------- ------- -------- -------- -------
LESS DIVIDENDS AND DISTRIBUTIONS:
Dividends from net investment
income 0.00 0.00 (0.04) (0.03) (0.08) (0.05)
Distributions from net realized
gains 0.00 0.00 (0.44) (0.04) (0.07) 0.00
------- ------- ------- -------- -------- -------
Total dividends and
distributions 0.00 0.00 (0.48) (0.07) (0.15) (0.05)
------- ------- ------- -------- -------- -------
NET ASSET VALUE, END OF PERIOD $ 11.34 $ 9.27 $ 6.59 $ 10.82 $ 12.19 $ 11.28
======= ======= ======= ======== ======== =======
Total return 22.33%+ 40.67% (35.95)% (10.71)% 9.46% 13.33%+
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period
(000s omitted) $85,540 $67,783 $60,189 $155,806 $218,421 $ 6,780
Ratio of expenses to average
net assets 1.68%@ 1.66%@ 1.65%@ 1.66%@ 1.62%@ 1.00%*
Ratio of net income (loss) to
average net assets (1.52)%* .55% 1.00% .24% .31% 1.25%*
Decrease reflected in above
operating expense ratios due
to waivers/reimbursements .51%* .73% .63% .46% .77% 11.08%*
Portfolio turnover rate 117.51% 196.07% 125.59% 92.48% 61.84% 57.76%
<FN>
--------------------------------------------------------------------------------
** For the period December 30, 1994 (commencement of operations) through
October 31, 1995.
@ Interest earned on uninvested cash balances is used to offset portions of
the transfer agent expenses. These arrangements resulted in a reduction to
theCommon Class shares' expenses by .03%, .01%, .00%, .01% and .01% for the
six months ended April 30, 2000, and for each of the years ended October 31,
1999, 1998, 1997 and 1996, respectively. The Common Class shares' operating
expense ratios after reflecting these arrangements were 1.65%, 1.65%, 1.65%,
1.65% and 1.61% for the six months ended April 30, 2000, and for each of the
years ended October 31, 1999, 1998, 1997 and 1996, respectively.
+ Non annualized.
* Annualized.
</FN>
</TABLE>
22
<PAGE>
WARBURG PINCUS EMERGING MARKETS FUND
NOTES TO FINANCIAL STATEMENTS (CONT'D)
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
9. OTHER FINANCIALHIGHLIGHTS -- (CONT'D)
<TABLE>
<CAPTION>
EMERGING MARKETS
---------------------------------------------------------------------------
ADVISOR CLASS
---------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE YEAR ENDED OCTOBER 31
APRIL 30, 2000 -----------------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995**
-------------- -------- ------- -------- ------- ------
<S> <C> <C> <C> <C> <C> <C>
PER-SHARE DATA
Net asset value, beginning of period $ 9.03 $ 6.44 $ 10.87 $ 12.21 $ 11.30 $10.00
------- ------- ------- ------- ------- ------
INVESTMENT ACTIVITIES:
Net investment income (loss) 0.13 0.04 0.21 0.00 (0.08) 0.14
Net gains (losses) on investments
and foreign currency related items
(both realized and unrealized) 1.88 2.55 (4.16) (1.33) 1.11 1.19
------- ------- ------- ------- ------- ------
Total from investment activities 2.01 2.59 (3.95) (1.33) 1.03 1.33
------- ------- ------- ------- ------- ------
LESS DIVIDENDS AND DISTRIBUTIONS:
Dividends from net investment income 0.00 0.00 (0.04) 0.00 (0.05) (0.03)
Distributions from net realized gains 0.00 0.00 (0.44) (0.01) (0.07) 0.00
------- ------- ------- ------- ------- ------
Total dividends and distributions 0.00 0.00 (0.48) (0.01) (0.12) (0.03)
------- ------- ------- ------- ------- ------
NET ASSET VALUE, END OF PERIOD $ 11.04 $ 9.03 $ 6.44 $ 10.87 $ 12.21 $11.30
======= ======= ======= ======= ======= ======
Total return 22.26%+ 40.22% (37.71)% (10.94)% 9.20% 13.29%+
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s omitted) $ 86 $ 42 $ 26 $ 266 $ 149 $ 1
Ratio of expenses to average
net assets 1.93%@ 1.91%@ 1.90%@ 1.90%@ 1.90%@ 1.22%*
Ratio of net income (loss) to average
net assets (1.91)%* .81% 1.01% (.09)% (.57)% 1.76%*
Decrease reflected in above
operating expense ratios due to
waivers/reimbursements .39%* .80% .94% .58% .65% 16.36%*
Portfolio turnover rate 117.51% 196.07% 125.59% 92.48% 61.84% 57.76%
<FN>
--------------------------------------------------------------------------------
** For the period December 30, 1994 (commencement of operations) through
October 31, 1995.
@ Interest earned on uninvested cash balances is used to offset portions of
the transfer agent expense. These arrangements resulted in a reduction to
the Advisor Class shares' expenses by .03%, .01%, .00%, .00% and .00% for
the six months ended April 30, 2000, and for each of the years ended October
31, 1999, 1998, 1997 and 1996, respectively. The Advisor Class shares'
operating expense ratios after reflecting these arrangements were 1.90% for
the six months ended April 30, 2000, and for each of the years ended October
31, 1999, 1998, 1997 and 1996, respectively.
+ Non annualized.
* Annualized.
</FN>
</TABLE>
23
<PAGE>
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<PAGE>
[GRAPHIC OMITTED]
WARBURG PINCUS FUNDS
PART OF CREDIT SUISSE ASSET MANAGEMENT
P.O. BOX 8500, BOSTON, MA 02266-8500
800-222-8977
PROVIDENT DISTRIBUTORS, INC., DISTRIBUTOR. CSIEN-3-0400
