<PAGE>
<PAGE>
SEMIANNUAL
REPORT
June 30, 1996
WARBURG PINCUS TRUST
- INTERNATIONAL EQUITY PORTFOLIO
- SMALL COMPANY GROWTH PORTFOLIO
[Logo]
<PAGE>
<PAGE>
The views of the Portfolios' management are as of the date of the letters and
holdings described in this semiannual report are as of June 30, 1996; these
views and holdings may have changed subsequent to these dates.
<PAGE>
<PAGE>
WARBURG PINCUS TRUST -- INTERNATIONAL EQUITY PORTFOLIO
SEMIANNUAL REPORT -- JUNE 30, 1996
- --------------------------------------------------------------------------------
Dear Shareholder: August 13, 1996
The objective of Warburg Pincus Trust -- International Equity Portfolio (the
'Portfolio') is long-term capital appreciation. The Portfolio aims to tap into
the strong growth potential of today's foreign stock markets by investing
primarily in companies whose principal business activities and interests are
outside the U.S.
For the six months ended June 30, 1996, the Portfolio had a total return of
9.95%, vs. returns of 4.52% for the Morgan Stanley Europe, Australasia and Far
East (EAFE) Index and 8.46% for the Lipper International Funds Index.
The Portfolio's performance for the six months was driven by timely stock
selection and, broadly, by its emphasis on Asian-Pacific markets, which in
general saw strong returns for the period. The Portfolio's largest country
weighting throughout remained Japan (30.5% of net assets as of June 30), which
rose on signs of continued economic recovery, an improved earnings outlook for
many companies, and an expansionary monetary policy from the Bank of Japan. We
believe that the prospects for the Japanese economy and Japanese equities
remain, in general, favorable, and that the Portfolio is well-positioned in
terms of its specific holdings. By sector, the Portfolio's largest weightings
are in two areas, machinery & industrial components and retail, reflecting our
view that Japan's economic recovery will be led by capital spending and
consumption.
As a defensive measure, we hedged a substantial portion of the Portfolio's
yen exposure through the reporting period. This worked to the Portfolio's
advantage, as the Japanese currency weakened against the U.S. dollar.
Other Asian-Pacific stocks that contributed positively to the Portfolio's
performance during the period were its holdings in Hong Kong, India, Indonesia
and Taiwan. Taiwan's stock market showed particular strength, rallying sharply
following the successful completion of the country's first democratic
presidential election in March and the subsequent easing of tensions with China.
One Asian market that lagged during the six months was South Korea, and the
Portfolio's South Korean weighting (4.0% of net assets as of June 30) negatively
impacted its performance. However, we believe that the market's fundamentals
remain attractive. Accordingly, we used price weakness during the period to
selectively build the Portfolio's exposure.
The Portfolio remained underweighted in Europe through the six months,
reflecting our general view that better growth prospects exist elsewhere. But
the Portfolio saw positive results from many of its European holdings, notably
its French stocks (6.3% of net assets as of June 30). Indeed, the French stock
market was Europe's strongest performer through the first half of 1996, a
welcome improvement after a disappointing showing in 1995. Other European
holdings
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<PAGE>
that had solid gains during the reporting period were the Portfolio's two German
issues, Adidas and SGL Carbon, as well as Portugal Telecom, a recently
privatized telecommunications firm that is the sole provider of domestic
telephone services in Portugal.
Richard H. King
Portfolio Manager
2
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WARBURG PINCUS TRUST -- SMALL COMPANY GROWTH PORTFOLIO
SEMIANNUAL REPORT -- JUNE 30, 1996
- --------------------------------------------------------------------------------
Dear Shareholder: August 13, 1996
The objective of Warburg Pincus Trust -- Small Company Growth Portfolio (the
'Portfolio') is capital growth. The Portfolio pursues its objective by investing
in equity securities of small-sized domestic companies.
For the six months ended June 30, 1996, the Portfolio had a total return of
14.15%, vs. returns of 10.36% for the Russell 2000 Index and 14.21% for the
Lipper Small Company Growth Funds Index.
The Portfolio, and small-company stocks in general, enjoyed robust gains
through the first five months of the reporting period, driven by a positive
earnings outlook for many smaller companies and by strong cash flows into
small-cap and aggressive-growth mutual funds. The small-cap sector suffered a
sharp correction in June, however, with particularly heavy losses suffered by
many technology companies. The Portfolio was negatively impacted by the pullback
in selected share prices, but nevertheless provided attractive returns for the
full six months.
We made few significant changes to the Portfolio during the period in terms
of its industry concentrations or specific holdings. We maintained fairly
significant weightings in several key areas, including computers (16.1% of net
assets as of June 30), health care (12.2%) and business services (11.3%). We
believe that the last group of companies, in particular, have very favorable
prospects, as they stand to benefit directly from corporate America's ongoing
penchant for downsizing and outsourcing. Accordingly, we selectively increased
the Portfolio's exposure to this area as the period progressed.
The Portfolio's holdings in computers and electronics were not immune to the
general weakness in technology stocks in June, but relative to the broader
sector they held up well. Given the present investment climate -- i.e., an
uncertain earnings outlook for many technology-related businesses -- we believe
that selectivity remains crucial. We have maintained the Portfolio's focus on
companies with proprietary products and/or services, expanding margins and
recurring revenues. We continue to avoid semiconductor manufacturers and other
makers of commodity-type products, whose stocks in general suffered the worst
damage during the recent downdraft.
We continue to find attractive companies in the health-care area,
specifically among makers of medical devices. The Portfolio also holds a number
of very promising companies in the pharmaceutical area (7.9% of net assets as of
June 30). We have identified selective values in other areas as well, including
oil services (4.8%), retail (4.6%), consumer non-durables (3.5%) and
telecommunications & equipment (2.7%).
3
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<PAGE>
Our outlook on the prospects for smaller-company stocks remains, in general,
quite favorable, recent volatility notwithstanding. Smaller companies continue,
for the most part, to generate superior rates of earnings growth relative to
their larger-cap counterparts, which should lead to an increase in investor
attention for these securities in the coming months. Also arguing for the
relative outperformance of smaller-company stocks is the strengthening dollar,
which has had a negative impact on the earnings of large-cap, multinational
firms but relatively limited effect on those of smaller, more domestically
oriented companies.
Elizabeth B. Dater Stephen J. Lurito
Co-Portfolio Manager Co-Portfolio Manager
4
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WARBURG PINCUS TRUST -- INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF NET ASSETS
June 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
----------- ------------
<S> <C> <C>
COMMON STOCK (95.5%)
Argentina (3.3%)
Buenos Aires Embotelladora SA ADR 65,100 $ 862,575
Telefonica de Argentina SA ADR 124,700 3,694,238
YPF SA ADR 150,700 3,390,750
------------
7,947,563
------------
Australia (3.7%)
AAPC Ltd. `D' 364,000 228,767
Boral Ltd. 543,000 1,407,717
Lend Lease Corp., Ltd. 320,042 4,902,787
Qantas Airways Ltd. 410,000 692,506
Qantas Airways Ltd. ADR 97,000 1,641,434
------------
8,873,211
------------
Austria (1.4%)
Bohler-Uddeholm AG `D' 8,645 670,593
V.A. Technologie AG 22,685 2,781,563
------------
3,452,156
------------
Belgium (0.4%)
Barco Industries 6,300 1,010,609
------------
Brazil (1.3%)
Panamerican Beverages, Inc. Class A 69,400 3,105,650
------------
Chile (1.8%)
Banco de A. Edwards ADR 75,500 1,585,500
Enersis SA ADR 87,300 2,706,300
------------
4,291,800
------------
China (1.2%)
Guangshen Railway Co., Ltd. `D' 1,447,368 546,935
Guangshen Railway Co., Ltd. ADR `D' 86,547 1,655,211
Henderson China Holding Ltd. `D' 265,000 592,274
Jilin Chemical Industrial Co., Ltd. 47,200 8,354
Jilin Chemical Industrial Co., Ltd. ADR `D' 6,950 127,706
------------
2,930,480
------------
Denmark (1.3%)
International Service System AS Class B 136,065 3,042,765
------------
Finland (1.6%)
Metra Oy Class B 35,245 1,583,600
Valmet Corp. Class A 129,334 2,193,143
------------
3,776,743
------------
</TABLE>
See Accompanying Notes to Financial Statements.
5
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WARBURG PINCUS TRUST -- INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF NET ASSETS (CONT'D)
June 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
----------- ------------
COMMON STOCK (CONT'D)
<S> <C> <C>
France (6.3%)
Assurances Generales de France 28,000 $ 759,230
Axime (Ex Segin) 1,800 252,091
Cardif SA 10,572 1,478,558
Compagnie Bancaire SA 29,500 3,328,146
Lagardere Groupe 130,100 3,358,154
Total Cie Franc Des Petroles Class B 28,655 2,128,084
Total Petroles SA ADR 6,000 222,750
Usinor Sacilor SA `D' 267,900 3,869,203
------------
15,396,216
------------
Germany (2.0%)
Adidas AG 42,000 3,501,151
SGL Carbon AG 12,317 1,450,012
------------
4,951,163
------------
Hong Kong (4.5%)
Citic Pacific Ltd. 292,200 1,181,559
Hong Kong Land Holdings Ltd. 1,880,000 4,230,000
Hong Kong Land Holdings Ltd. ADR 186,600 2,099,250
HSBC Holdings PLC 13,091 197,874
Jardine Matheson Holdings Ltd. 455,400 3,347,190
------------
11,055,873
------------
India (1.8%)
Bharat Petroleum Corp. Ltd. 11,000 107,691
Hindalco Industries Ltd. GDR 300 11,400
Indo Gulf Fertilisers and Chemicals Corp., Ltd. 258,000 399,900
Indorama Synthetics GDR # 67,400 850,925
Reliance Industries Ltd. GDS 202,185 2,678,951
State Bank of India 29,000 250,352
------------
4,299,219
------------
Indonesia (0.8%)
P.T. Bank International Indonesia 59,800 295,531
P.T. Mulia Industrindo 148,330 219,913
P.T. Semen Cibinong 356,000 803,180
P.T. Semen Gresik 65,000 189,246
P.T. Sinar Mas Multiartha `D' 92,000 112,677
P.T. Telekomunikasi Indonesia ADR 7,200 214,200
------------
1,834,747
------------
</TABLE>
See Accompanying Notes to Financial Statements.
6
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<PAGE>
WARBURG PINCUS TRUST -- INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF NET ASSETS (CONT'D)
June 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
----------- ------------
COMMON STOCK (CONT'D)
<S> <C> <C>
Israel (0.9%)
ECI Telecommunications Limited Designs 89,550 $ 2,082,038
------------
Japan (30.5%)
Advantest Corp. 30,000 1,192,870
Anritsu Corp. 100,000 1,389,397
Canon Inc. 110,000 2,292,505
Circle K Japan Co., Ltd. 47,600 2,471,371
Daibiru Corp. # 145,000 1,935,101
Daimaru, Inc. `D' 130,000 911,426
Daiwa Securities Co., Ltd. 4,000 51,554
DDI Corp. 285 2,490,494
East Japan Railway Co. 283 1,487,431
Hankyu Realty 227,000 2,427,697
Hirata Technical Co., Ltd. # 92,000 1,580,987
Hitachi Ltd. 84,000 783,181
Honda Motor Co. 91,000 2,362,340
I.O. Data Device, Inc. 27,500 1,055,759
Jusco Co., Ltd. 71,000 2,329,890
Kawasaki Heavy Industries 515,000 2,612,660
Keyence Corp. 10,500 1,430,073
Kirin Beverage Corp. 34,000 500,366
Mitsubishi Estate Co., Ltd. 171,000 2,360,238
Mitsubishi Heavy Industries Ltd. 353,000 3,075,037
NEC Corp. 68,000 739,671
Nicchi Co., Ltd. 255,000 4,242,230
Nikko Securities Co., Ltd. 129,000 1,450,366
Nippon Communication Systems Corp. 100,000 1,352,834
Nippon Telegraph & Telephone Corp. 132 979,744
Nitta Industrial Corp. # 123,000 2,304,845
NKK Corp. `D' 1,175,000 3,565,814
Noritsu Koki Co., Ltd. 63,000 3,190,311
NTT Data Communications Systems Co. 31 929,433
Orix Corp. 41,700 1,547,550
Pioneer Electronic Corp. 100,000 2,385,740
Rohm Co., Ltd. 18,000 1,191,225
Sharp Corp. 100,000 1,755,027
Shinmei Electric Co. 76,000 1,979,890
Sony Corp. 28,000 1,845,338
TDK Corp. 35,000 2,092,322
Tokyo Electron Ltd. 13,000 379,068
Toyo Trust & Banking Co. 171,000 1,766,271
</TABLE>
See Accompanying Notes to Financial Statements.
7
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WARBURG PINCUS TRUST -- INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF NET ASSETS (CONT'D)
June 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
----------- ------------
COMMON STOCK (CONT'D)
<S> <C> <C>
Japan (cont'd)
Uny Co., Ltd. 74,000 $ 1,467,824
Yamatake-Honeywell 125,000 2,273,766
Yokogawa Electric Corp. 171,000 1,719,378
York-Benimaru Co., Ltd. 6,300 251,079
------------
74,150,103
------------
Malaysia (0.6%)
Land and General BHD 584,000 1,440,096
Westmont Industries BHD 19,000 33,368
Westmont Industries BHD Class A 26,600 44,156
------------
1,517,620
------------
Mexico (0.5%)
Gruma SA de CV Class B 283,500 1,312,431
------------
New Zealand (5.1%)
Brierley Investments Ltd. 4,300,800 4,076,229
Fletcher Challenge Building `D' 739,750 1,447,972
Fletcher Challenge Forestry 3,594,000 4,467,730
Lion Nathan Ltd. 931,900 2,438,510
------------
12,430,441
------------
Norway (0.6%)
Den Norske Bank AS 481,000 1,460,541
------------
Portugal (2.0%)
Portugal Telecom SA 9,200 240,611
Portugal Telecom SA ADR 181,300 4,759,125
------------
4,999,736
------------
Singapore (1.3%)
DBS Land Ltd. 527,000 1,808,352
Development Bank of Singapore Ltd. 111,000 1,385,041
------------
3,193,393
------------
</TABLE>
See Accompanying Notes to Financial Statements.
8
<PAGE>
<PAGE>
WARBURG PINCUS TRUST -- INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF NET ASSETS (CONT'D)
June 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
----------- ------------
COMMON STOCK (CONT'D)
<S> <C> <C>
South Korea (3.9%)
Daewoo Electronics Co., Ltd. 341,020 $ 2,989,707
Hanil Bank 25,000 286,791
Inchon Iron & Steel Co., Ltd. 115,990 3,289,482
Inchon Iron & Steel Co., Ltd. New 22,128 575,710
Korea Long Term Credit Bank 6,500 182,617
Samsung Electronics Co., Ltd. 5,760 483,670
Samsung Electronics Co., Ltd. GDR 5,914 303,093
Samsung Electronics Co., Ltd. GDR 8,000 194,000
Samsung Electronics Co., Ltd. New 620 49,309
Ssangyong Investment & Securities Co., Ltd. `D' 66,000 1,188,163
------------
9,542,542
------------
Spain (3.8%)
Banco de Santander SA 2,000 93,445
Banco de Santander SA ADR 53,800 2,494,975
Iberdrola SA 444,700 4,568,955
Repsol SA ADR 62,200 2,161,450
------------
9,318,825
------------
Sweden (1.5%)
Asea AB Class B 14,432 1,528,684
Astra AB Class B 50,135 2,189,334
------------
3,718,018
------------
Switzerland (1.2%)
Ciba-Geigy AG Series B 2,462 2,991,049
------------
Taiwan (4.2%)
China Steel Corp. 3,070,000 3,215,712
GP-Taiwan Index Fund `D' 600,000 591,000
Hocheng Group Corp. 507,000 1,087,943
Phoenixtec Power Co., Ltd. `D' 1,987,700 3,318,255
Taiwan Semiconductor Mfg. Co. 12,000 25,095
Ton Yi Industrial Corp. 871,560 1,391,580
Yang Ming Marine Transport Corp. 445,000 657,101
------------
10,286,686
------------
Thailand (0.6%)
Bangkok Bank Public Co., Ltd. 77,800 1,056,998
Industrial Finance Corp. of Thailand 36,000 162,085
Thai Military Bank Public Co., Ltd. 62,200 245,656
------------
1,464,739
------------
</TABLE>
See Accompanying Notes to Financial Statements.
9
<PAGE>
<PAGE>
WARBURG PINCUS TRUST -- INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF NET ASSETS (CONT'D)
June 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
----------- ------------
COMMON STOCK (CONT'D)
<S> <C> <C>
United Kingdom (7.4%)
British Airport Authority PLC 358,248 $ 2,605,102
Cookson Group PLC 772,000 3,400,678
Grand Metropolitan PLC 166,202 1,102,705
Grand Metropolitan PLC ADR 11,100 296,925
Pace Micro Technology PLC `D' 825,000 2,435,582
Reckitt & Colman PLC 73,350 770,446
Rolls-Royce PLC 1,191,600 4,147,378
Takare PLC 306,980 620,081
Vodafone Group PLC 674,000 2,508,191
------------
17,887,088
------------
TOTAL COMMON STOCK (Cost $221,502,745) 232,323,445
------------
PREFERRED STOCK (0.1%)
South Korea
Samsung Electronics Co., Ltd.
(Cost $437,413) 5,205 219,983
------------
CALL OPTIONS (0.5%)
South Korea (0.0%)
Kospi 200 Index, 12/04/96, (Strike Price $.126002) `D' 12,036,587 46,509
------------
Taiwan (0.5%)
Taiwan Weighted Index, 07/16/96, (Strike Price $184.01) `D' 5,597 297,923
Taiwan Weighted Index, 08/02/96, (Strike Price $174.89) `D' 11,323 709,702
------------
1,007,625
------------
TOTAL CALL OPTIONS (Cost $455,000) 1,054,134
------------
STOCK RIGHTS (0.0%)
Australia (0.0%)
AAPC Ltd., 07/03/96 `D' 29,120 0
------------
Taiwan (0.0%)
Phoenixtec Power Co., Ltd., 08/02/96 `D' 61,160 42,041
------------
TOTAL STOCK RIGHTS (Cost $0) 42,041
------------
<CAPTION>
PAR
---
<S> <C> <C>
CONVERTIBLE BONDS (1.0%)
Taiwan (0.3%)
President Enterprises, 0.00%, 07/22/01 $ 510,000 832,575
------------
Thailand (0.7%)
Bangkok Bank Public Co., Ltd., 3.25%, 03/03/04 1,480,000 1,679,800
------------
TOTAL CONVERTIBLE BONDS (Cost $2,409,694) 2,512,375
------------
</TABLE>
See Accompanying Notes to Financial Statements.
10
<PAGE>
<PAGE>
WARBURG PINCUS TRUST -- INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF NET ASSETS (CONT'D)
June 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR VALUE
----------- ------------
SHORT-TERM INVESTMENTS (4.1%)
<S> <C> <C>
Repurchase agreement with Goldman Sachs & Co., dated
06/28/96 at 5.25% to be repurchased at $10,015,380 on
07/01/96. (Collateralized by $9,990,000 U.S. Treasury Note
at 5.875%, due 07/31/97, with a market value of
$10,219,770.) (Cost $10,011,000) $10,011,000 $ 10,011,000
------------
TOTAL INVESTMENTS AT VALUE (101.2%) (Cost $234,815,852*) 246,162,978
LIABILITIES IN EXCESS OF OTHER ASSETS (1.2%) (2,828,812)
------------
NET ASSETS (100.0%) (applicable to 20,785,191 shares outstanding) $243,334,166
------------
------------
NET ASSET VALUE, offering and redemption price per share
($243,334,166 [div] 20,785,191) $11.71
------
------
</TABLE>
INVESTMENT ABBREVIATIONS
ADR = American Depository Receipt
GDR = Global Depository Receipt
GDS = Global Depository Share
- --------------------------------------------------------------------------------
`D' Non-income producing security.
# Illiquid security.
* Cost for Federal income tax purposes is $234,828,234.
See Accompanying Notes to Financial Statements.
11
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<PAGE>
WARBURG PINCUS TRUST -- SMALL COMPANY GROWTH PORTFOLIO
STATEMENT OF NET ASSETS
June 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
----------- ------------
<S> <C> <C>
COMMON STOCK (94.2%)
Banks and Savings & Loans (1.4%)
Banco Latinoamericano de Exportaciones SA, Class E 38,900 $ 2,188,125
Great Financial Corp. 62,900 1,627,537
------------
3,815,662
------------
Business Services (11.3%)
American Management Systems, Inc. `D' 74,000 2,164,500
Catalina Marketing Corp. `D' 24,200 2,214,300
CDI Corp. `D' 71,800 2,423,250
Checkpoint Systems, Inc. `D' 107,500 3,695,313
Daisytek International Corp. `D' 67,400 2,830,800
DecisionOne Holdings Corp. `D' 94,800 2,251,500
Enterprise Systems, Inc. `D' 43,400 1,193,500
HPR, Inc. `D' 49,300 1,047,625
ICTS Holland Productions BV `D' 144,000 1,026,000
Health Management Systems, Inc. `D' 72,700 2,308,225
Norrell Corp. 53,100 2,608,537
On Assignment, Inc. `D' 51,300 1,910,925
QuickResponse Services, Inc. `D' 70,800 2,035,500
Registry, Inc. `D' 8,200 239,850
Vincam Group, Inc. `D' 5,000 130,000
Whittman-Hart, Inc. `D' 9,700 349,200
Wilmar Industries, Inc. `D' 80,000 2,080,000
------------
30,509,025
------------
Capital Equipment (0.8%)
Roper Industries, Inc. 44,200 2,154,750
------------
Communications & Media (2.3%)
Central European Media Enterprises Ltd. Class A `D' 141,800 3,545,000
Harte-Hanks Communications, Inc. 95,950 2,662,612
------------
6,207,612
------------
</TABLE>
See Accompanying Notes to Financial Statements.
12
<PAGE>
<PAGE>
WARBURG PINCUS TRUST -- SMALL COMPANY GROWTH PORTFOLIO
STATEMENT OF NET ASSETS (CONT'D)
June 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
----------- ------------
COMMON STOCK (CONT'D)
<S> <C> <C>
Computers (16.1%)
Ansys, Inc. `D' 18,700 $ 245,437
Aspect Development, Inc. `D' 10,000 255,000
Auspex Systems, Inc. `D' 143,200 2,148,000
Avant Corp. `D' 103,000 2,394,750
Check Point Software Technologies Ltd. `D' 7,100 170,400
Cimatron Ltd. `D' 179,600 1,436,800
Citrix Systems, Inc. `D' 31,100 1,181,800
Cognex Corp. `D' 153,100 2,468,738
Cooper & Chyan Technology, Inc. `D' 131,500 2,876,563
Epic Design Technology, Inc. `D' 84,500 2,133,625
Harbinger Corp. `D' 68,000 1,887,000
Integrated Systems, Inc. `D' 37,900 1,518,369
Learning Tree International, Inc. `D' 63,200 1,943,400
National Instruments Corp. `D' 107,400 2,416,500
Open Market, Inc. `D' 3,000 73,125
Physician Computer Network Inc. `D' 185,100 2,140,219
PLATINUM Technology, Inc. `D' 207,300 3,135,413
Pure Software, Inc. `D' 57,900 1,968,600
Segue Software, Inc. `D' 43,500 1,294,125
Siebel Systems, Inc. `D' 5,500 169,125
Synopsys, Inc. `D' 122,200 4,857,451
System Software Associates, Inc. 144,050 2,448,850
Tecnomatix Technologies Ltd. `D' 122,500 2,327,500
Wonderware Corp. `D' 110,500 2,085,687
------------
43,576,477
------------
Conglomerates (0.4%)
Strategic Distribution, Inc. `D' 145,700 1,147,388
------------
Consumer Non-Durables (3.5%)
Central Garden & Pet Co. `D' 199,400 3,589,200
Nature's Sunshine Products, Inc. 128,900 3,286,950
Sola International, Inc. `D' 88,700 2,550,125
------------
9,426,275
------------
Consumer Services (2.2%)
DeVRY, Inc. `D' 56,800 2,556,000
ITT Educational Services, Inc. `D' 69,400 2,003,925
Veterinary Centers of America, Inc. `D' 65,700 1,470,037
------------
6,029,962
------------
</TABLE>
See Accompanying Notes to Financial Statements.
13
<PAGE>
<PAGE>
WARBURG PINCUS TRUST -- SMALL COMPANY GROWTH PORTFOLIO
STATEMENT OF NET ASSETS (CONT'D)
June 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
----------- ------------
COMMON STOCK (CONT'D)
<S> <C> <C>
Electronics (8.8%)
Burr-Brown Corp. `D' 125,800 $ 2,232,950
Glenayre Technologies, Inc. `D' 84,550 4,227,500
Lattice Semiconductor Corp. `D' 87,400 2,108,525
Methode Electronics Inc., Class A 143,200 2,434,400
Photon Dynamics, Inc. `D' 100,800 957,600
Photronics, Inc. `D' 93,200 2,446,500
Sawtek, Inc. `D' 20,200 696,900
Supertex, Inc. `D' 134,800 2,173,650
ThermoTrex Corp. `D' 47,500 2,339,375
TranSwitch Corp. `D' 149,500 1,980,875
Uniphase Corp. `D' 58,300 2,069,650
------------
23,667,925
------------
Energy (2.5%)
Brown (Tom), Inc. `D' 119,400 2,044,725
Chieftain International, Inc. `D' 133,100 2,678,638
KCS Energy, Inc. 20,600 592,250
Texas Merdian Resources Corp. `D' 160,100 1,440,900
------------
6,756,513
------------
Engineering & Construction (0.7%)
Jacobs Engineering Group, Inc. `D' 69,800 1,840,975
------------
Environmental Services (0.9%)
Allied Waste Industries, Inc. `D' 262,900 2,333,237
------------
Financial Services (2.0%)
Aames Financial Corp. 58,300 2,091,512
Gainsco, Inc. 9,100 89,862
Transactions Systems Architects, Inc., Class A `D' 48,300 3,236,100
------------
5,417,474
------------
Food, Beverages & Tobacco (0.4%)
Suprema Specialties, Inc. `D' 200,000 1,200,000
------------
</TABLE>
See Accompanying Notes to Financial Statements.
14
<PAGE>
<PAGE>
WARBURG PINCUS TRUST -- SMALL COMPANY GROWTH PORTFOLIO
STATEMENT OF NET ASSETS (CONT'D)
June 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
----------- ------------
COMMON STOCK (CONT'D)
<S> <C> <C>
Healthcare (12.2%)
Ballard Medical Products 103,800 $ 1,985,175
Biopsys Medical, Inc. `D' 18,600 372,000
Collaborative Clinical Research, Inc. `D' 30,400 353,400
Conmed Corp. `D' 92,400 2,460,150
EMCare Holdings, Inc. `D' 87,100 2,591,225
Endosonics Corp. `D' 164,500 2,940,437
Endovascular Technologies, Inc. `D' 157,400 1,731,400
IDX Systems Corp. `D' 59,200 2,308,800
Mariner Health Group, Inc. `D' 97,200 1,786,050
MedCath, Inc. `D' 65,700 788,400
Novoste Corp. `D' 3,000 29,625
OrthoLogic Corp. `D' 110,600 1,410,150
Patterson Dental Co. 43,400 1,573,250
Phymatrix Corp. `D' 93,900 2,183,175
Physicians Resource Group, Inc. `D' 81,700 2,726,737
Rexall Sundown, Inc. `D' 70,800 1,911,600
Sunrise Assisted Living, Inc. `D' 10,100 242,400
Trex Medical Corp. `D' 4,200 79,275
United Dental Care, Inc. `D' 87,900 3,713,776
Urologix, Inc. `D' 17,800 240,300
VISX, Inc. 48,600 1,658,475
------------
33,085,800
------------
Leisure & Entertainment (2.6%)
AMC Entertainment, Inc. `D' 87,400 2,436,275
Family Golf Centers, Inc. `D' 73,300 1,841,662
LodgeNet Entertainment Corp. `D' 92,500 1,271,875
Premier Parks, Inc. `D' 51,300 1,115,775
Vacation Break USA, Inc. `D' 25,000 321,875
------------
6,987,462
------------
Lodging & Restaurants (2.0%)
Doubletree Corp. `D' 84,300 2,992,650
Renaissance Hotel Group N.V. `D' 107,700 2,315,550
Suburban Lodges of America, Inc. `D' 9,700 224,312
------------
5,532,512
------------
Oil Services (4.8%)
Global Industries, Ltd. `D' 97,500 2,900,625
Input/Output, Inc. `D' 123,800 4,008,025
Nabors Industries, Inc. `D' 158,600 2,577,250
Petroleum Geo Services ADR `D' 118,000 3,348,250
------------
12,834,150
------------
</TABLE>
See Accompanying Notes to Financial Statements.
15
<PAGE>
<PAGE>
WARBURG PINCUS TRUST -- SMALL COMPANY GROWTH PORTFOLIO
STATEMENT OF NET ASSETS (CONT'D)
June 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
----------- ------------
COMMON STOCK (CONT'D)
<S> <C> <C>
Pharmaceuticals (7.9%)
Alexion Pharmaceuticals, Inc. `D' 186,800 $ 1,634,500
Alkermes, Inc. `D' 200,200 2,452,450
DepoTech Corp. `D' 97,500 2,461,875
EntreMed, Inc. `D' 89,300 1,339,500
Gilead Sciences, Inc. `D' 132,900 3,355,725
ICOS Corp. `D' 158,700 1,388,625
ImmuLogic Pharmaceutical Corp. `D' 205,100 1,871,538
La Jolla Pharmaceutical Co. `D' 223,400 1,228,700
Ligand Pharmaceuticals, Inc. Class B `D' 179,100 2,977,538
Serologicals Corp. `D' 95,500 2,530,750
------------
21,241,201
------------
Publishing (0.3%)
Valassis Communications Inc. `D' 48,600 899,100
------------
Real Estate (1.2%)
NHP, Inc. `D' 156,700 3,231,938
------------
Retail (4.6%)
Borders Group, Inc. `D' 102,800 3,315,300
Cost Plus, Inc. `D' 61,100 1,695,525
Kenneth Cole Productions, Inc., Class A `D' 116,600 2,302,850
Payless ShoeSource, Inc. `D' 82,400 2,616,200
Urban Outfitters, Inc. `D' 96,200 2,429,050
------------
12,358,925
------------
Telecommunications & Equipment (2.7%)
Brooks Fiber Properties, Inc. `D' 12,100 399,300
Natural Microsystems Corp. `D' 48,600 1,701,000
Network Equipment Technologies `D' 95,200 2,023,000
Teledata Communications Ltd. `D' 225,400 2,732,975
Wireless One, Inc. `D' 20,700 372,600
------------
7,228,875
------------
Transportation (2.6%)
Coach USA, Inc. `D' 43,600 970,100
Heartland Express, Inc. `D' 60,300 1,613,025
Hub Group, Inc., Class A `D' 124,700 2,540,762
Mark VII, Inc. `D' 100,400 2,020,550
------------
7,144,437
------------
TOTAL COMMON STOCK (Cost $230,365,490) 254,627,675
------------
STOCK RIGHTS (0.0%)
Healthcare
Trex Medical Corp., 06/20/96 `D'
(Cost $0) 4,680 0
------------
</TABLE>
See Accompanying Notes to Financial Statements.
16
<PAGE>
<PAGE>
WARBURG PINCUS TRUST -- SMALL COMPANY GROWTH PORTFOLIO
STATEMENT OF NET ASSETS (CONT'D)
June 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR VALUE
----------- ------------
<S> <C> <C>
SHORT-TERM INVESTMENTS (5.9%)
Repurchase agreement with Goldman Sachs & Co., dated 06/28/96
at 5.25% to be repurchased at $16,116,048 on 07/01/96.
(Collateralized by $15,530,000 U.S. Treasury Note at 9.00%,
due 05/15/98, with a market value of $16,446,270.) (Cost
$16,109,000) $16,109,000 $ 16,109,000
------------
TOTAL INVESTMENTS AT VALUE (100.1%) (Cost $246,474,490*) 270,736,675
LIABILITIES IN EXCESS OF OTHER ASSETS (0.1%) (358,214)
------------
NET ASSETS (100.0%) (applicable to 18,935,057 shares outstanding) $270,378,461
------------
------------
NET ASSET VALUE, offering and redemption price per share
($270,378,461 [div] 18,935,057) $14.28
------
------
</TABLE>
INVESTMENT ABBREVIATIONS
ADR = American Depository Receipt
- --------------------------------------------------------------------------------
`D' Non-income producing security.
* Cost for Federal income tax purposes is $246,606,239.
See Accompanying Notes to Financial Statements.
17
<PAGE>
<PAGE>
WARBURG PINCUS TRUST
STATEMENTS OF OPERATIONS
For the Six Months Ended June 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY PORTFOLIO SMALL COMPANY GROWTH PORTFOLIO
------------------------------ ------------------------------
<S> <C> <C>
INVESTMENT INCOME:
Dividends (net of foreign taxes withheld of
$255,388 and $0, respectively) $ 1,782,739 $ 120,193
Interest 229,274 441,175
---------- ----------
Total investment income 2,012,013 561,368
---------- ----------
EXPENSES:
Investment advisory 840,725 760,500
Administrative services 184,960 169,000
Audit 10,016 9,717
Custodian/Sub-custodian 50,390 49,484
Insurance 936 2,486
Interest 903 3,867
Legal 24,122 11,729
Organizational 6,186 6,173
Printing 7,219 8,205
Registration 17,842 7,290
Transfer agent 14,678 12,641
Trustees 2,328 4,181
Miscellaneous 3,353 1,387
---------- ----------
1,163,658 1,046,660
Less fees waived and expenses reimbursed (26,788) (11,877)
---------- ----------
Total expenses 1,136,870 1,034,783
---------- ----------
Net investment income (loss) 875,143 (473,415)
---------- ----------
NET REALIZED AND UNREALIZED GAIN (LOSS) FROM
INVESTMENTS AND FOREIGN CURRENCY RELATED
ITEMS:
Net realized gain from security
transactions 108,854 3,406,054
Net realized loss from foreign currency
related items (6,578) 0
Net change in unrealized appreciation from
investments and
foreign currency related items 11,994,894 12,379,167
---------- ----------
Net realized and unrealized gain from
investments and
foreign currency related items 12,097,170 15,785,221
---------- ----------
Net increase in net assets resulting
from operations $ 12,972,313 $ 15,311,806
---------- ----------
---------- ----------
</TABLE>
See Accompanying Notes to Financial Statements.
18
<PAGE>
<PAGE>
WARBURG PINCUS TRUST
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY PORTFOLIO SMALL COMPANY GROWTH PORTFOLIO
----------------------------------- -----------------------------------
FOR THE SIX FOR THE PERIOD FOR THE SIX FOR THE PERIOD
MONTHS ENDED JUNE 30, 1995 MONTHS ENDED JUNE 30, 1995
JUNE 30, (COMMENCEMENT OF JUNE 30, (COMMENCEMENT OF
1996 OPERATIONS) THROUGH 1996 OPERATIONS) THROUGH
(UNAUDITED) DECEMBER 31, 1995 (UNAUDITED) DECEMBER 31, 1995
------------ ------------------- ------------ -------------------
<S> <C> <C> <C> <C>
FROM OPERATIONS:
Net investment income (loss) $ 875,143 $ 58,109 $ (473,415 ) $ (86,882)
Net realized gain (loss) from
security transactions 108,854 (66,288) 3,406,054 (791,236)
Net realized gain (loss) from
foreign currency related
items (6,578 ) 179,901 0 0
Net change in unrealized
appreciation from investments
and foreign currency related
items 11,994,894 1,335,993 12,379,167 11,883,018
------------ ---------- ------------ ----------
Net increase in net assets
resulting
from operations 12,972,313 1,507,715 15,311,806 11,004,900
------------ ---------- ------------ ----------
FROM DISTRIBUTIONS:
Dividends from net investment
income 0 (58,109) 0 0
Distributions in excess of net
investment income 0 (327,277) 0 0
------------ ---------- ------------ ----------
Net decrease from
distributions 0 (385,386) 0 0
------------ ---------- ------------ ----------
FROM CAPITAL SHARE TRANSACTIONS:
Proceeds from sale of shares 206,460,222 63,501,464 212,319,252 101,359,554
Reinvested dividends 0 385,386 0 0
Net asset value of shares
redeemed (40,635,237 ) (522,311) (54,697,511 ) (14,969,540)
------------ ---------- ------------ ----------
Net increase in net assets
from capital share
transactions 165,824,985 63,364,539 157,621,741 86,390,014
------------ ---------- ------------ ----------
Net increase in net assets 178,797,298 64,486,868 172,933,547 97,394,914
NET ASSETS:
Beginning of period 64,536,868 50,000 97,444,914 50,000
------------ ---------- ------------ ----------
End of period $243,334,166 $64,536,868 $270,378,461 $97,444,914
------------ ---------- ------------ ----------
------------ ---------- ------------ ----------
</TABLE>
See Accompanying Notes to Financial Statements.
19
<PAGE>
<PAGE>
WARBURG PINCUS TRUST -- INTERNATIONAL EQUITY PORTFOLIO
FINANCIAL HIGHLIGHTS
(For a Share of the Portfolio Outstanding Throughout Each Period)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS JUNE 30, 1995
ENDED (COMMENCEMENT OF
JUNE 30, 1996 OPERATIONS) THROUGH
(UNAUDITED) DECEMBER 31, 1995
------------- -------------------
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.65 $ 10.00
----- -----
Income from Investment Operations:
Net Investment Income .06 .03
Net Gain on Securities and Foreign Currency Related
Items
(both realized and unrealized) 1.00 .70
----- -----
Total from Investment Operations 1.06 .73
----- -----
Less Distributions:
Dividends from Net Investment Income .00 (.01)
Distributions in Excess of Net Investment Income .00 (.07)
----- -----
Total Distributions .00 (.08)
----- -----
NET ASSET VALUE, END OF PERIOD $ 11.71 $ 10.65
----- -----
----- -----
Total Return 9.95%`D' 7.30%`D'
RATIOS /SUPPLEMENTAL DATA:
Net Assets, End of Period (000s) $243,334 $64,537
Ratios to average daily net assets:
Operating expenses 1.35%* 1.44%*
Net investment income 1.04%* .48%*
Decrease reflected in above expense ratios due to
waivers .03%* .77%*
Portfolio Turnover Rate 15.69%`D' 8.31%`D'
Average Commission Rate # $ .0222 --
</TABLE>
- --------------------------------------------------------------------------------
`D' Non-annualized
* Annualized
# Computed by dividing the total amount of commissions paid by the total
number of shares purchased and sold during the period for which
there was a commission charge.
See Accompanying Notes to Financial Statements.
20
<PAGE>
<PAGE>
WARBURG PINCUS TRUST -- SMALL COMPANY GROWTH PORTFOLIO
FINANCIAL HIGHLIGHTS
(For a Share of the Portfolio Outstanding Throughout Each Period)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS JUNE 30, 1995
ENDED (COMMENCEMENT OF
JUNE 30, 1996 OPERATIONS) THROUGH
(UNAUDITED) DECEMBER 31, 1995
------------- -------------------
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 12.51 $ 10.00
----- -----
Net Investment Loss (.03) (.01)
Net Gain on Securities (both realized and
unrealized) 1.80 2.52
----- -----
Total from Investment Operations 1.77 2.51
----- -----
NET ASSET VALUE, END OF PERIOD $ 14.28 $ 12.51
----- -----
----- -----
Total Return 14.15%`D' 25.10%`D'
RATIOS /SUPPLEMENTAL DATA:
Net Assets, End of Period (000s) $270,378 $97,445
Ratio to average daily net assets:
Operating expenses 1.22%* 1.25%*
Net investment loss (.56)%* (.36)%*
Decrease reflected in above expense ratios due
to waivers .01%* .25%*
Portfolio Turnover Rate 65.13%`D' 34.25%`D'
Average Commission Rate # $ .0553 --
</TABLE>
- --------------------------------------------------------------------------------
`D' Non-annualized
* Annualized
# Computed by dividing the total amount of commissions paid by the total number
of shares purchased and sold during the period for which there was a
commission charge.
See Accompanying Notes to Financial Statements.
21
<PAGE>
<PAGE>
WARBURG PINCUS TRUST
NOTES TO FINANCIAL STATEMENTS
June 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Warburg Pincus Trust (the 'Trust') is an open-end management investment
company registered under the Investment Company Act of 1940, as amended, and
currently offers two investment funds (the 'Portfolios'): International Equity
Portfolio is a diversified investment fund that seeks long-term capital
appreciation by investing in equity securities of non-U.S. issuers; Small
Company Growth Portfolio is a non-diversified investment fund that seeks capital
appreciation by investing in equity securities of small-sized domestic
companies. Shares of a Portfolio are not available directly to individual
investors but may be offered only to certain (a) life insurance companies for
allocation to certain of their separate accounts established for the purpose of
funding variable annuity contracts and variable life insurance contracts and (b)
tax-qualified pension and retirement plans ('Plans'), including
participant-directed Plans which elect to make a Portfolio an investment option
for Plan participants.
The net asset value of each Portfolio is determined daily as of the close of
regular trading on the New York Stock Exchange. Each Portfolio's investments are
valued at market value, which is currently 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 ask prices. In the absence of market
quotations, investments are generally valued at fair value as determined by or
under the direction of the Trust's governing Board. Short-term investments that
mature in 60 days or less are valued on the basis of amortized cost, which
approximates market value.
The books and records of the Portfolios are maintained in U.S. dollars.
Transactions denominated in foreign currencies are recorded at the current
prevailing exchange rates. All assets and liabilities denominated in foreign
currencies are translated into U.S. dollar amounts at the current exchange rate
at the end of the period. Translation gains or losses resulting from changes in
the exchange rate during the reporting period and realized gains and losses on
the settlement of foreign currency transactions are reported in the results of
operations for the current period. The Portfolios do not isolate that portion of
gains and losses on investments in equity securities which are due to changes in
the foreign exchange rate from that which are due to changes in market prices of
equity securities. The Portfolios isolate that portion of 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.
Security transactions are accounted for on a trade date basis. Interest
income is recorded on the accrual basis. Dividends are recorded on the
ex-dividend date. The cost of investments sold is determined by use of the
specific identification method for both financial reporting and income tax
purposes.
Dividends from net investment income and distributions of net realized
capital gains, if any, are declared and paid annually. However, to the extent
that a
22
<PAGE>
<PAGE>
WARBURG PINCUS TRUST
NOTES TO FINANCIAL STATEMENTS (CONT'D)
June 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
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 income taxes as it is the Trust's intention
to have each Portfolio continue to qualify for and elect the tax treatment
applicable to regulated investment companies under the Internal Revenue Code and
make the requisite distributions to its shareholders which will be sufficient to
relieve it from Federal income and excise taxes.
Costs incurred by the Portfolios in connection with their organization have
been deferred and are being amortized over a period of five years from the date
each Portfolio commenced its operations.
The Portfolios may enter into repurchase agreement transactions. Under the
terms of a typical repurchase agreement, a Portfolio acquires an underlying
security subject to an obligation of the seller to repurchase. The value of the
underlying security collateral will be maintained at an amount at least equal to
the total amount of the purchase obligation, including interest. The collateral
is in the Portfolio's possession.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statement and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from these estimates.
The Portfolios have an arrangement with their transfer agent whereby interest
earned on univested cash balances was used to offset a portion of the transfer
agent expense. For the six months ended June 30, 1996, the International Equity
Portfolio and the Small Company Growth Portfolio received credits or
reimbursements of $316 and $0, respectively under this arrangement.
2. INVESTMENT ADVISER, CO-ADMINISTRATORS AND DISTRIBUTOR
Warburg, Pincus Counsellors, Inc. ('Warburg'), a wholly owned subsidiary of
Warburg, Pincus Counsellors G.P. ('Counsellors G.P.'), serves as each
Portfolio's investment adviser. For its investment advisory services, the
International Equity Portfolio and the Small Company Growth Portfolio pay
Warburg a fee calculated at an annual rate of 1.00% and .90%, respectively, of
each Portfolio's average daily net assets. For the six months ended June 30,
1996, investment advisory fees earned and waived by Warburg were as follows:
<TABLE>
<CAPTION>
GROSS NET
PORTFOLIO ADVISORY FEE WAIVER ADVISORY FEE
- ---------------------------------------- ------------ ------- ------------
<S> <C> <C> <C>
International Equity $840,725 $23,636 $817,089
Small Company Growth 760,500 10,689 749,811
</TABLE>
23
<PAGE>
<PAGE>
WARBURG PINCUS TRUST
NOTES TO FINANCIAL STATEMENTS (CONT'D)
June 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
2. INVESTMENT ADVISER, CO-ADMINISTRATORS AND DISTRIBUTOR (CONT'D)
Counsellors Funds Service, Inc. ('CFSI'), a wholly owned subsidiary of
Warburg, and PFPC Inc. ('PFPC'), an indirect, wholly owned subsidiary of PNC
Bank Corp. ('PNC'), serve as each Portfolio's co-administrators. For its
administrative services, CFSI currently receives a fee calculated at an annual
rate of .10% of each Portfolio's average daily net assets. For the six months
ended June 30, 1996, administrative services fees earned by CFSI were as
follows:
<TABLE>
<CAPTION>
PORTFOLIO CO-ADMINISTRATION FEE
- ------------------------------------------------------ ---------------------
<S> <C>
International Equity $84,073
Small Company Growth 84,500
</TABLE>
For its administrative services, PFPC currently receives a fee calculated at
an annual rate of .10% of the average daily net assets of the Small Company
Growth Portfolio. For the International Equity Portfolio, PFPC receives a fee
calculated at an annual rate of .12% on the Portfolio'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. For the six months ended June
30, 1996, adminstrative service fees earned and waived by PFPC were as follows:
<TABLE>
<CAPTION>
NET
PORTFOLIO CO-ADMINISTRATION FEE WAIVER CO-ADMINISTRATION FEE
- ----------------------------- --------------------- ------ ---------------------
<S> <C> <C> <C>
International Equity $ 100,887 $2,836 $98,051
Small Company Growth 84,500 1,188 83,312
</TABLE>
Counsellors Securities Inc. ('CSI'), also a wholly owned subsidiary of
Warburg, serves as each Portfolio's distributor. No compensation is paid by the
Portfolios to CSI for its distribution services.
3. INVESTMENTS IN SECURITIES
For the six months ended June 30, 1996, purchases and sales of investment
securities (excluding short-term investments) were as follows:
<TABLE>
<CAPTION>
PORTFOLIO PURCHASES SALES
- ------------------------------------------------ ------------ ------------
<S> <C> <C>
International Equity $192,032,749 $ 25,267,048
Small Company Growth 251,155,603 103,278,749
</TABLE>
At June 30, 1996, the net unrealized appreciation from investments for those
securities having an excess of value over cost and net unrealized depreciation
from investments for those securities having an excess of cost over value (based
on cost for Federal income tax purposes) was as follows:
<TABLE>
<CAPTION>
UNREALIZED UNREALIZED NET UNREALIZED
PORTFOLIO APPRECIATION DEPRECIATION APPRECIATION
- ------------------------------------- ------------ ------------ --------------
<S> <C> <C> <C>
International Equity $19,425,755 $(8,091,011 ) $ 11,334,744
Small Company Growth 34,126,349 (9,995,913 ) 24,130,436
</TABLE>
4. FORWARD FOREIGN CURRENCY CONTRACTS
The Portfolios 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 from the potential inability of
counterparties
24
<PAGE>
<PAGE>
WARBURG PINCUS TRUST
NOTES TO FINANCIAL STATEMENTS (CONT'D)
June 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
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 Portfolios will
enter into forward contracts primarily for hedging purposes. The forward
currency contracts are adjusted daily by the daily exchange rate of the
underlying currency and any gains or losses are recorded for financial statement
purposes as unrealized until the contract settlement date.
At June 30, 1996, the International Equity Portfolio had the following open
forward currency contracts:
<TABLE>
<CAPTION>
FORWARD FOREIGN UNREALIZED
CURRENCY EXPIRATION CURRENCY CONTRACT CONTRACT FOREIGN EXCHANGE
CONTRACT DATE TO BE SOLD AMOUNT VALUE GAIN/(LOSS)
- ---------------- ---------- --------------- ----------- ----------- ----------------
<S> <C> <C> <C> <C> <C>
French Francs 09/24/96 36,158,500 $ 7,000,000 $ 7,062,207 $ (62,207)
French Francs 09/24/96 12,818,500 2,554,147 2,503,613 50,534
Japanese Yen 03/05/97 2,426,400,000 24,000,000 22,981,625 1,018,375
Japanese Yen 03/05/97 2,322,080,000 23,000,000 21,993,559 1,006,441
----------- ----------- --------
$56,554,147 $54,541,004 $2,013,143
----------- ----------- --------
----------- ----------- --------
</TABLE>
5. CAPITAL SHARE TRANSACTIONS
The International Equity Portfolio and the Small Company Growth Portfolio are
each authorized to issue an unlimited number of full and fractional shares of
beneficial interest, par value of $.001 per share.
Transactions in shares of each Portfolio were as follows:
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY PORTFOLIO SMALL COMPANY GROWTH PORTFOLIO
------------------------------------ ------------------------------------
FOR THE SIX FOR THE SIX
MONTHS ENDED JUNE 30, 1995 MONTHS ENDED JUNE 30, 1995
JUNE 30, (COMMENCEMENT OF JUNE 30, (COMMENCEMENT OF
1996 OPERATIONS) THROUGH 1996 OPERATIONS) THROUGH
(UNAUDITED) DECEMBER 31, 1995 (UNAUDITED) DECEMBER 31, 1995
------------ ------------------- ------------ -------------------
<S> <C> <C> <C> <C>
Shares sold 18,310,969 6,066,626 15,116,216 9,104,528
Shares issued to shareholders
on
reinvestment of dividends 0 37,056 0 0
Shares redeemed (3,584,399) (50,061) (3,972,924) (1,317,763)
------------ ------- ------------ --------
Net increase in shares
outstanding 14,726,570 6,053,621 11,143,292 7,786,765
------------ ------- ------------ --------
------------ ------- ------------ --------
</TABLE>
6. NET ASSETS
Net assets at June 30, 1996, consisted of the following:
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY SMALL COMPANY GROWTH
PORTFOLIO PORTFOLIO
-------------------- --------------------
<S> <C> <C>
Capital contributed, net $229,239,524 $243,974,873
Accumulated net investment income (loss) 721,189 (473,415)
Accumulated net realized gain from security
transactions 42,566 2,614,818
Net unrealized appreciation from
investments and foreign currency related
items 13,330,887 24,262,185
----------- -----------
Net assets $243,334,166 $270,378,461
----------- -----------
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</TABLE>
25
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Further information is contained in the Prospectus, which must
precede or accompany this report.
[Logo]
P.O. BOX 9030, BOSTON, MA 02205-9030
800-369-2728
COUNSELLORS SECURITIES INC., DISTRIBUTOR WPTRU-3-0696
STATEMENT OF DIFFERENCES
------------------------
The dagger symbol shall be expressed as `D'
The division sign shall be expressed as [div]
