<PAGE>
<PAGE>
SEMIANNUAL
REPORT
June 30, 1997
WARBURG PINCUS TRUST
INTERNATIONAL EQUITY PORTFOLIO
SMALL COMPANY GROWTH PORTFOLIO
POST-VENTURE CAPITAL PORTFOLIO
The Warburg Pincus Trust (the 'Trust') Shares are not available directly
to individual investors but may be offered only through certain insurance
products and pension and retirement plans.
More complete information about the Trust, including charges and expenses
and, where applicable, the special considerations and risks associated
with international investing 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)369-2728 or by writing to Warburg Pincus, P.O. Box 9030, Boston, MA
02205-9030.
[Logo]
<PAGE>
<PAGE>
From time to time, the Portfolios' investment adviser and co-administrator may
waive some fees and/or reimburse some expenses, without which performance would
be lower. Waivers and/or reimbursements are subject to change.
Returns are historical and include change in share price and reinvestment of
dividends and capital gains. Past performance cannot guarantee future results.
Returns and share price will fluctuate, and redemption value may be more or less
than original cost.
The views of the Portfolios' management are as of the date of the letters and
portfolio holdings described in this semiannual report are as of June 30, 1997;
these views and portfolio holdings may have changed subsequent to these dates.
Nothing in this semiannual report is a recommendation to purchase or sell
securities.
<PAGE>
<PAGE>
WARBURG PINCUS TRUST -- INTERNATIONAL EQUITY PORTFOLIO
SEMIANNUAL ADVISER'S REPORT
- --------------------------------------------------------------------------------
Dear Shareholder: August 15, 1997
The objective of Warburg Pincus Trust -- International Equity Portfolio (the
'Portfolio') is long-term capital appreciation. The Portfolio pursues its
objective by investing primarily in a broadly diversified portfolio of equity
securities of companies that have their principal business activities and
interests outside the U.S.
For the six months ended June 30, 1997, the Portfolio had a gain of 14.98%,
vs. gains of 11.21% for the Morgan Stanley Europe, Australasia and Far East
(EAFE) Index* and 12.53% for the Lipper International Funds Average.** The
Portfolio's respective one-year and since-inception (on June 30, 1995) average
annual total returns through June 30 were 15.02% and 16.44%.
The Portfolio's performance reflects both stock selection and regional
allocation. Strong performers for the Portfolio were its European holdings,
broadly, as virtually all Continental European markets saw impressive gains over
the six months, supported by a backdrop of low inflation, falling interest rates
and optimism regarding progress toward European Monetary Union. We increased the
Portfolio's European exposure selectively over the period, having identified a
number of what we considered to be attractive investment opportunities, and this
higher weighting proved timely. Notably strong showings came from the
Portfolio's German and Spanish stocks, as well as its Nordic holdings
collectively.
Asian-Pacific markets (excluding Japan) had mixed results for the six months,
but overall the Portfolio's weighting had a favorable impact on its returns. The
Portfolio benefited from particularly strong performances from its holdings in
Hong Kong, India and Taiwan, and also from its relatively limited exposure to
the region's laggards (e.g., Thailand, Malaysia and the Philippines, all of
which suffered double-digit losses).
Japan, the Portfolio's largest Asian-Pacific weighting through the period,
struggled early in the period but recovered strongly to post a solid gain for
the six months, fueled by renewed optimism on the country's economic prospects.
Investors also reacted favorably to the government's deregulatory efforts and
developments at the corporate level (specifically, signs of a growing emphasis
on shareholder value among Japanese companies). The Portfolio benefited from the
market's recovery and from good stock selection, which allowed us to outperform
comparable Japanese market indexes.
Another area of strength for the Portfolio was Latin America. Virtually all
Latin American stock markets performed strongly during the period, rallying on
optimism toward the region's continued progress on the economic, fiscal and
political fronts. The Portfolio saw strong performances from all of its Latin
American stocks, particularly its Brazilian and Argentine issues, which
represented its largest weightings in the region.
Richard H. King
Portfolio Manager
- ------------
* The Morgan Stanley Europe, Australasia and Far East Index is an unmanaged
index (with no defined investment objective) of international equities that
includes reinvestment of dividends, and is compiled by Morgan Stanley
Capital International.
** The Lipper International Funds Average measures the average total return of
all international funds tracked by Lipper Analytical Services Inc.
<PAGE>
<PAGE>
WARBURG PINCUS TRUST -- SMALL COMPANY GROWTH PORTFOLIO
SEMIANNUAL ADVISER'S REPORT
- --------------------------------------------------------------------------------
Dear Shareholder: August 15, 1997
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 domestic companies.
For the six months ended June 30, 1997, the Portfolio had a gain of 2.67%,
vs. gains of 5.23% for the Russell 2000 Growth Index* and 6.04% for the Lipper
Small Cap Funds Index.** The Portfolio's respective one-year and since-inception
(on June 30, 1995) average annual total returns through June 30 were 2.38% and
20.85%.
The Portfolio's underperformance vs. its benchmarks reflects weakness in
specific stocks, most of which were concentrated in the technology area. Though
a number of our holdings here had less-than-stellar results, we remain committed
to them and to the sector as a whole, and used price weakness during the period
to add selectively to our positions.
The Portfolio also saw disappointing returns from several of its health-care
stocks. Here, too, we used price weakness to increase our stake in specific
issues, though we remained very cautious in terms of stock selection, given the
increasingly difficult pricing environment for health-care companies,
particularly smaller ones.
Stocks that performed well for the Portfolio included its energy, financial,
telecommunications and consumer-oriented issues. We maintained or increased our
weightings in each of these areas over the six months, as we were able to
identify stocks that represented what we considered to be good long-term
opportunity.
Our outlook on the prospects for small-cap stocks remains positive. Investor
sentiment toward the group, which had long been poor, has improved, reflected in
increasing cash flows into small-company and aggressive-growth mutual funds;
valuations remain compelling; and the earnings outlook for small companies is
favorable. We believe that small-cap stocks also stand to benefit considerably,
especially over the longer term, from a reduction in the capital-gains tax. Set
within this environment, we will continue to strive to identify those issues
with the best prospects for long-term growth.
<TABLE>
<S> <C>
Elizabeth B. Dater Stephen J. Lurito
Co-Portfolio Manager Co-Portfolio Manager
</TABLE>
- ------------
* The Russell 2000 Growth Index is an unmanaged index (with no defined
investment objective) of those securities in the Russell 2000 Index with a
greater-than-average growth orientation. It includes reinvestment of
dividends, and is compiled by Frank Russell Company.
** The Lipper Small Cap Funds Index is an equal-weighted performance index,
adjusted for capital-gains distributions and income dividends, of the largest
qualifying funds in this investment objective, and is compiled by Lipper
Analytical Services Inc.
2
<PAGE>
<PAGE>
WARBURG PINCUS TRUST -- POST-VENTURE CAPITAL PORTFOLIO
SEMIANNUAL ADVISER'S REPORT
- --------------------------------------------------------------------------------
Dear Shareholder: August 15, 1997
The investment objective of Warburg Pincus Trust -- Post-Venture Capital
Portfolio (the 'Portfolio') is long-term growth of capital. The Portfolio
pursues its objective by investing primarily in equity securities of companies
considered to be in their post-venture-capital stage of development.
For the six months ended June 30, 1997, the Portfolio had a total return of
3.38%, vs. a 5.23% return for the Russell 2000 Growth Index* and a 15.40% return
for the Lipper Growth Funds Index.** The Portfolio's non-annualized total return
since its inception (on September 30, 1996) was 0.90%.
The reporting period proved to be a difficult one for the Portfolio, and,
more broadly, for the types of stocks in which the Portfolio invests (i.e.,
smaller-cap and aggressive-growth issues). Volatility in the technology area had
a particularly dramatic impact on the Portfolio's performance. These holdings
were subject to a sharp sell-off early in the period, as investors, in reaction
to some earnings disappointments among technology's more-visible names, fled to
the perceived safety of large-cap stocks with relatively stable earnings growth.
Though the Portfolio's technology holdings staged a strong rally in the latter
part of the period (and we are encouraged by the continued strength these stocks
have shown since the end of June), their collective performance weighed on its
return for the six months. This shorter-term volatility notwithstanding, we
remain committed to technology as a long-term investment theme and expect that
specific technology stocks will figure prominently in the Portfolio going
forward.
Areas that contributed positively to the Portfolio's performance over the six
months included its financial-services holdings, which collectively benefited
from a favorable interest-rate environment and growing demand for financial
products and services. The Portfolio also saw strong showings from some of its
largest positions within the health-care sector, most notably Oxford Health
Plans, a well-managed, rapidly growing HMO that we believe is well-positioned to
continue to take advantage of increasing demand for managed care.
Our outlook for the collective performance on the stocks of post-venture
companies (which we define as those that have received venture-capital financing
either during the early stages of their existence or the early stages of the
development of a new product or service, or as part of a restructuring or
recapitalization) remains positive. We note a recent study*** that concluded
that such companies tend to be concentrated in high-growth industries (e.g.,
software, biotechnology, semiconductors & electronics, and communications), and
that they generate breakthrough technologies and products. The study also stated
that these companies enjoy rapid earnings growth relative to companies that
lacked such backing.
3
<PAGE>
<PAGE>
WARBURG PINCUS TRUST -- POST-VENTURE CAPITAL PORTFOLIO
SEMIANNUAL ADVISER'S REPORT (CONT'D)
- --------------------------------------------------------------------------------
We believe that a carefully chosen portfolio of stocks of venture-backed
companies stands to benefit investors over time, and we will continue to devote
our efforts to identifying those with the best long-term prospects. We would
caution investors, however, that investing in these securities entails potential
risks (e.g., that of heightened volatility) as well as rewards. Because of the
nature of the Portfolio's holdings and certain strategies it may use, an
investment in the Portfolio should be considered only for the aggressive portion
of an investor's assets and may not be appropriate for all investors.
<TABLE>
<S> <C>
Elizabeth B. Dater Stephen J. Lurito
Co-Portfolio Manager Co-Portfolio Manager
</TABLE>
- ------------
* The Russell 2000 Growth Index is an unmanaged index (with no defined
investment objective) of those securities in the Russell 2000 Index with a
greater-than-average growth orientation. It includes reinvestment of
dividends, and is compiled by Frank Russell Company.
** The Lipper Growth Funds Index is an equal-weighted performance index,
adjusted for capital-gains distributions and income dividends of the largest
qualifying funds in this investment objective, and is compiled by Lipper
Analytical Services Inc.
*** Sixth Annual Economic Impact of Venture Capital Study, National Venture
Capital Association/Coopers & Lybrand L.L.P.(U.S.A.), 1996.
4
<PAGE>
<PAGE>
WARBURG PINCUS TRUST -- INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF NET ASSETS
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
----------- ------------
<S> <C> <C>
COMMON STOCKS (92.7%)
Argentina (3.1%)
Banco de Galicia & Buenos Aires SA ADR 23,566 $ 621,553
Banco Frances del Rio De La Plata SA ADR 28,750 934,375
Telefonica De Argentina SA ADR 151,900 5,259,538
YPF SA Sponsored ADR 172,700 5,310,525
------------
12,125,991
------------
Australia (4.5%)
AAPC, Ltd. 379,879 252,492
Boral, Ltd. 1,136,500 3,579,522
National Australia Bank, Ltd. 356,500 5,107,947
Orogen Minerals, Ltd. 502,600 1,438,736
Qantas Airways, Ltd. 1,933,614 4,527,422
Qantas Airways, Ltd. ADR 128,000 2,972,544
------------
17,878,663
------------
Austria (1.6%)
Boehler-Uddeholm AG 22,126 1,715,809
V.A. Technologie AG 24,785 4,535,715
------------
6,251,524
------------
Brazil (2.3%)
Panamerican Beverages, Inc. Class A 138,800 4,563,050
Telecomunicacoes Brasileiras SA Sponsored ADR 29,200 4,431,100
------------
8,994,150
------------
Chile (1.1%)
Banco De A. Edwards ADR 110,500 2,306,688
Enersis SA ADR 55,300 1,966,606
------------
4,273,294
------------
China (1.1%)
Cheung Kong Infrastructure Holdings, Ltd. 356,580 1,033,292
Guangshen Railway Co., Ltd. 2,733,368 1,199,573
Guangshen Railway Co., Ltd. ADR 74,847 1,637,278
Henderson China Holding, Ltd. 132,300 222,854
Jiangsu Expressway Co., Ltd.`D' 678,000 240,665
------------
4,333,662
------------
Denmark (1.2%)
International Service System AS Class B 136,065 4,877,102
------------
</TABLE>
See Accompanying Notes to Financial Statements.
5
<PAGE>
<PAGE>
WARBURG PINCUS TRUST -- INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF NET ASSETS (CONT'D)
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
----------- ------------
COMMON STOCKS (CONT'D)
<S> <C> <C>
Finland (2.0%)
Huhtamaki OY Class I 45,500 $ 1,958,337
Metra OY Class B 49,090 1,479,469
Rauma OY 80,160 1,836,974
Upm-Kymmene OY 123,500 2,853,952
------------
8,128,732
------------
France (4.7%)
Compagnie Generale Des Eaux 24,000 3,075,195
Lagardere Groupe SCA 132,479 3,848,106
Marine-Wendel SA 22,600 2,307,417
Societe Generale Paris 36,700 4,096,721
Total Cie Franc Des Petroles ADR 6,118 309,724
Total Cie Franc Des Petroles Class B 50,923 5,147,151
------------
18,784,314
------------
Germany (2.4%)
Ava Allgemeine Handelsgesellschaft der Verbraucher AG`D' 4,000 1,158,323
Bayerische Motoren Werke AG 3,014 2,485,310
Deutsche Bank AG 88,000 5,167,269
GEA AG 1,710 676,587
------------
9,487,489
------------
Hong Kong (3.2%)
First Pacific Co., Ltd. 1,671,671 2,136,169
Hong Kong Land Holdings, Ltd. 1,392,812 3,704,880
Hong Kong Land Holdings, Ltd. ADR 186,600 2,481,780
HSBC Holdings PLC 11,562 347,727
Jardine Matheson Holdings, Ltd. 589,470 4,185,237
------------
12,855,793
------------
India (2.6%)
Hindalco Industries, Ltd. 30,000 819,553
Indo Rama Synthetics GDR 67,400 480,077
Reliance Industries, Ltd. GDS 179,685 4,132,755
Reliance Industries, Ltd. GDS 144A 22,500 517,500
State Bank of India, Ltd. 217,800 2,199,415
Tata Engineering & Locomotive Co., Ltd. 159,200 2,010,011
------------
10,159,311
------------
</TABLE>
See Accompanying Notes to Financial Statements.
6
<PAGE>
<PAGE>
WARBURG PINCUS TRUST -- INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF NET ASSETS (CONT'D)
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
----------- ------------
COMMON STOCKS (CONT'D)
<S> <C> <C>
Indonesia (1.6%)
P.T. Bank International Indonesia 117,350 $ 101,328
P.T. Indosat 482,000 1,441,838
P.T. Indosat ADR 115,000 3,442,813
P.T. Semen Cibinong 356,000 933,183
P.T. Semen Gresik 71,500 160,228
P.T. Sinar Mas Multiartha 117,700 106,472
------------
6,185,862
------------
Israel (1.4%)
Blue Square Israel Co., Ltd. ADR`D' 159,600 2,753,100
ECI Telecommunications Limited Designs 100,750 2,997,313
------------
5,750,413
------------
Italy (0.7%)
Eni SPA 489,700 2,767,347
------------
Japan (24.7%)
Advantest Corp. 33,000 2,533,810
Aiwa Co., Ltd. 60,500 1,388,317
Daibiru Corp. 145,000 1,745,921
Daimaru, Inc. 111,000 638,243
Daiwa Securities Co., Ltd. 4,000 31,550
DDI Corp. 465 3,432,423
Fuji Bank, Ltd. 180,000 2,701,335
Fujitsu, Ltd. 321,000 4,453,276
Hankyu Realty Co., Ltd. 230,000 1,850,275
Hirata Technical Co., Ltd. 110,400 925,699
I.O. Data Device, Inc. 27,000 895,210
Isuzu Motors, Ltd. 452,000 1,557,805
Japan Asia Investment Co., Ltd. 225,000 1,480,237
Jusco Co., Ltd. 101,000 3,410,435
KAO Corp. 318,000 4,411,657
Kawasaki Heavy Industries 545,000 2,534,552
Keyence Corp. 11,550 1,713,201
Matsushita Electric Works 360,000 4,083,413
Mitsubishi Estate Co., Ltd. 166,000 2,404,328
Mitsubishi Heavy Industries, Ltd. 303,000 2,323,855
Mycal Corp. 185,000 2,663,380
NEC Corp. 355,000 4,955,938
Nikko Securities Co., Ltd. 129,000 793,517
Nitta Industrial Corp. 123,000 1,513,219
NTT Data Communications Systems Co., Ltd. 31 1,198,238
</TABLE>
See Accompanying Notes to Financial Statements.
7
<PAGE>
<PAGE>
WARBURG PINCUS TRUST -- INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF NET ASSETS (CONT'D)
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
----------- ------------
COMMON STOCKS (CONT'D)
<S> <C> <C>
Japan (cont'd)
Orix Corp. 86,700 $ 6,422,502
Pioneer Electronic Corp. 100,000 2,425,617
Rohm Co., Ltd. 19,000 1,956,199
Sankyo Co., Ltd. 116,000 3,896,693
Sharp Corp. 142,000 1,957,595
Shinmei Electric Co. 91,000 2,000,873
Shohkoh Fund & Co., Ltd. 6,000 1,816,595
Sony Corp. 63,000 5,491,406
Sumitomo Bank, Ltd. 235,000 3,854,812
TDK Corp. 7,000 513,655
Toray Industries, Inc. 292,000 2,081,529
Uny Co., Ltd. 74,000 1,446,296
Yamanouchi Pharmaceutical Co., Ltd. 160,000 4,299,799
Yamatake-Honeywell 125,000 2,377,628
Yokogawa Electric 171,000 1,484,556
------------
97,665,589
------------
Malaysia (0.4%)
Land and General BHD 623,500 716,383
YTL Power International BHD`D' 845,000 1,064,620
------------
1,781,003
------------
Mexico (0.3%)
Gruma SA De CV Class B`D' 260,304 1,199,588
------------
Netherlands (3.6%)
ASM Lithography Holding NV`D' 25,200 1,457,130
ASM Lithography Holding NV ADR`D' 60,600 3,545,100
Philips Electronics NV 127,100 9,104,009
------------
14,106,239
------------
New Zealand (4.2%)
Brierley Investments Ltd. 5,424,900 5,306,594
Fletcher Challenge Building 1,041,350 3,133,734
Fletcher Challenge Forestry 5,582,500 8,115,291
Fletcher Challenge Forestry (New) 41,654 59,421
------------
16,615,040
------------
</TABLE>
See Accompanying Notes to Financial Statements.
8
<PAGE>
<PAGE>
WARBURG PINCUS TRUST -- INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF NET ASSETS (CONT'D)
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
----------- ------------
COMMON STOCKS (CONT'D)
<S> <C> <C>
Norway (0.4%)
Smedvig ASA ADR Class B 43,300 $ 1,104,150
Smedvig ASA Class B 21,400 522,649
------------
1,626,799
------------
Philippines (0.5%)
Millicom International Cellular SA`D' 41,650 1,988,788
------------
Portugal (1.2%)
Cimpor Cimentos De Portugal SA 42,000 978,942
Portugal Telecom SA 4,800 193,647
Portugal Telecom SA ADR 91,100 3,655,388
------------
4,827,977
------------
Singapore (2.6%)
DBS Land, Ltd. 1,081,000 3,417,584
Development Bank of Singapore, Ltd. 390,000 4,910,121
Keppel Corp., Ltd. 323,000 1,434,602
Keppel Corp., Ltd. Class A`D' 80,750 350,178
------------
10,112,485
------------
South Africa (0.5%)
De Beers Centenary Linked Units 51,000 1,882,852
------------
South Korea (3.4%)
Daewoo Electronics Co., Ltd. 255,720 1,972,615
Hanil Bank 231,800 1,305,180
Kookmin Bank 625 12,000
Korea Electric Power Corp. 162,700 4,855,349
Korea Long Term Credit Bank 6,825 108,454
Samsung Electronics Co., Ltd. 12,320 1,384,023
Samsung Electronics Co., Ltd. (New) 290 32,578
Ssangyong Investment & Securities Co., Ltd.`D' 82,500 781,334
Yukong Co., Ltd. 115,700 2,843,249
------------
13,294,782
------------
Spain (1.4%)
Banco De Santander 3,500 107,838
Banco De Santander ADR 92,400 2,858,625
Catalana Occidente SA 31,500 1,569,121
Repsol SA ADR 23,500 997,281
------------
5,532,865
------------
</TABLE>
See Accompanying Notes to Financial Statements.
9
<PAGE>
<PAGE>
WARBURG PINCUS TRUST -- INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF NET ASSETS (CONT'D)
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
----------- ------------
COMMON STOCKS (CONT'D)
<S> <C> <C>
Sweden (3.6%)
ABB AB Series B 293,320 $ 4,095,218
Astra AB Class B 120,360 2,139,417
Biacore International AB ADR`D' 116,800 1,379,700
Electrolux AB Series B 89,845 6,480,966
------------
14,095,301
------------
Switzerland (2.0%)
Julius Baer Holding AG 3,600 5,509,072
Novartis AG Bearer 1,620 2,586,676
------------
8,095,748
------------
Taiwan (0.3%)
China Steel Corp. 1,004,397 1,062,204
------------
Thailand (0.4%)
Bangkok Bank Public Co., Ltd. 39,800 284,514
Industrial Finance Corp. of Thailand 218,300 289,313
Siam Cement Co., Ltd. 27,500 494,779
Thai Military Bank Public Co., Ltd. 273,700 318,767
------------
1,387,373
------------
United Kingdom (9.7%)
British Airport Authority PLC 363,736 3,351,505
Care First Group PLC 306,980 603,015
Cookson Group PLC 1,025,328 3,610,016
Energy Group PLC 236,980 2,528,749
Grand Metropolitan PLC 102,402 991,275
Hanson PLC 509,450 2,531,523
Imperial Chemical Industries PLC 184,600 2,567,522
Medeva PLC 965,000 4,120,507
Orange PLC 1,250,500 4,132,189
Rolls-Royce PLC 1,202,840 4,595,434
Thistle Hotels PLC 846,248 2,232,867
Vodafone Group PLC 996,300 4,851,231
Williams Holdings PLC 430,276 2,313,586
------------
38,429,419
------------
TOTAL COMMON STOCKS (Cost $322,704,447) 366,557,699
------------
PREFERRED STOCK (0.1%)
South Korea (0.1%)
Samsung Electronics Co., Ltd. (Cost $437,413) 5,205 247,413
------------
</TABLE>
See Accompanying Notes to Financial Statements.
10
<PAGE>
<PAGE>
WARBURG PINCUS TRUST -- INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF NET ASSETS (CONT'D)
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
----------- ------------
WARRANTS (0.0%)
<S> <C> <C>
France (0.0%)
Compagnie Generale Des Eaux, 05/02/01`D' 24,000 $ 14,375
------------
Indonesia (0.0%)
P.T. Bank International Indonesia, 01/17/00`D' 29,975 12,048
P.T. Sinar Mas Multiartha, 11/28/01`D' 17,940 8,114
------------
20,162
------------
TOTAL WARRANTS (Cost $7,482) 34,537
------------
CALL OPTIONS (0.0%)
Singapore (0.0%)
DBS 50 Index, 01/22/98 (Strike Price $402.7127)`D' 3,537 22,600
DBS 50 Index, 01/23/98 (Strike Price $406.912)`D' 3,436 19,506
DBS 50 Index, 01/26/98 (Strike Price $407.3930652)`D' 3,384 19,407
DBS 50 Index, 02/26/98 (Strike Price $404.0032)`D' 705 5,436
------------
66,949
------------
Thailand (0.0%)
SET 50 Index, 01/22/98 (Strike Price $2.1419167)`D' 481,258 2,618
SET 50 Index, 01/23/98 (Strike Price $2.1143625)`D' 479,761 4,567
SET 50 Index, 01/26/98 (Strike Price $2.4783)`D' 478,464 603
SET 50 Index, 01/30/98 (Strike Price $2.3629359)`D' 490,196 1,706
------------
9,494
------------
TOTAL CALL OPTIONS (Cost $1,039,027) 76,443
------------
<CAPTION>
PAR
---
CONVERTIBLE BONDS (0.5%)
Thailand (0.5%)
Bangkok Bank Public Co., Ltd. 3.25%, 03/03/04 (Cost
$2,764,552) $ 2,588,000 1,992,760
------------
REPURCHASE AGREEMENT (5.3%)
Repurchase agreement with Goldman, Sachs & Co. dated
06/30/97 at 5.75% to be repurchased at $20,942,34 on
07/01/97. (Collateralized by $21,580,000 U.S. Treasury Note
5.125%, due 11/30/98. Market value of collateral is
$21,374,990.) (Cost $20,939,000) 20,939,000 20,939,000
------------
TOTAL INVESTMENTS AT VALUE (98.6%) (Cost $347,891,921*) 389,847,852
OTHER ASSETS IN EXCESS OF LIABILITIES (1.4%) 5,429,025
------------
NET ASSETS (100.0%) (applicable to 29,934,979 shares outstanding) $395,276,877
------------
------------
NET ASSET VALUE, offering and redemption price per share
($395,276,877 [div] 29,934,979) $13.20
------
------
</TABLE>
INVESTMENT ABBREVIATIONS
<TABLE>
<C> <S>
ADR = American Depository Receipt
GDR = Global Depository Receipt
GDS = Global Depository Share
</TABLE>
- --------------------------------------------------------------------------------
`D' Non-income producing security.
* Cost for federal income tax purposes is $347,901,023.
See Accompanying Notes to Financial Statements.
11
<PAGE>
<PAGE>
WARBURG PINCUS TRUST -- SMALL COMPANY GROWTH PORTFOLIO
STATEMENT OF NET ASSETS
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
COMMON STOCK (94.7%) ----------- ------------
<S> <C> <C>
Aerospace & Defense (1.0%)
Aviall, Inc. `D' 76,900 $ 1,076,600
Doncaster PLC Sponsored ADR `D' 160,000 3,700,000
------------
4,776,600
------------
Banks & Savings & Loans (2.9%)
Bank United Corp. Class A 131,000 4,978,000
First Security Corp. 152,500 4,165,156
HUBCO, Inc. 152,543 4,423,747
------------
13,566,903
------------
Business Services (10.7%)
BISYS Group, Inc. `D' 102,600 4,283,550
Bowne & Co., Inc. 115,000 4,010,625
CDI Corp. `D' 98,800 4,118,725
Getty Communications PLC ADR `D' 303,400 4,475,150
ICTS International NV `D' 304,400 2,359,100
Norrell Corp. 134,600 4,441,800
On Assignment, Inc. `D' 84,300 3,287,700
Outdoor Systems, Inc. `D' 136,300 5,213,475
QuickResponse Services, Inc.`D' 115,600 4,190,500
Robert Half International, Inc. `D' 98,500 4,635,656
Sterling Commerce, Inc. `D' 55,000 1,808,125
Technology Solutions Co. `D' 56,800 2,243,600
Universal Outdoor Holdings, Inc.`D' 140,000 4,882,500
------------
49,950,506
------------
Capital Equipment (0.5%)
Valmont Industries, Inc. 128,400 2,439,600
------------
Communications & Media (2.7%)
Central European Media Enterprises, Ltd. Class A 184,200 4,789,200
Harte-Hanks Communications, Inc. `D' 132,050 3,895,475
Heftel Broadcasting Corp. `D' 69,500 3,839,875
------------
12,524,550
------------
Computers (6.7%)
Cognex Corp. `D' 174,000 4,611,000
Harbinger Corp. `D' 163,800 4,586,400
Learning Tree International, Inc. `D' 112,200 4,978,875
National Instruments Corp. `D' 133,500 4,705,875
NetSpeak Corp.`D' 32,000 300,000
Rational Software Corp. `D' 245,200 4,122,425
System Software Associates, Inc. 340,000 2,592,500
Tecnomatix Technologies, Ltd. `D' 159,100 5,170,750
------------
31,067,825
------------
</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, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
----------- ------------
COMMON STOCK (CONT'D)
<S> <C> <C>
Consumer Non-Durables (1.8%)
Central Garden & Pet Co. `D' 207,100 $ 5,177,500
Footstar, Inc. `D' 132,100 3,451,113
------------
8,628,613
------------
Consumer Services (2.7%)
Budget Group Inc. Class A 142,200 4,905,900
DeVRY, Inc. `D' 128,000 3,456,000
ITT Educational Services, Inc. `D' 164,200 4,074,212
------------
12,436,112
------------
Electronics (8.4%)
Avant! Corp. `D' 178,800 5,777,475
Burr-Brown Corp. `D' 207,800 7,169,100
Etec Systems, Inc. `D' 126,400 5,419,400
KLA Tencor Instruments Corp. `D' 150,000 7,312,500
Lattice Semiconductor Corp. `D' 70,000 3,955,000
SpeedFam International, Inc. `D' 120,500 4,322,937
Structural Dynamics Research Corp. `D' 204,000 5,355,000
------------
39,311,412
------------
Energy (3.2%)
Chieftan International, Inc. `D' 189,400 4,154,962
KCS Energy, Inc. 151,000 3,076,625
Meridian Resource Corp. `D' 236,200 2,834,400
Southern Mineral Corp. `D' # 176,625 883,125
Stone Energy Corp. `D' 138,000 3,777,750
------------
14,726,862
------------
Environmental Services (2.2%)
Allied Waste Industries, Inc. `D' 367,400 6,383,575
Superior Services, Inc. `D' 155,500 3,693,125
------------
10,076,700
------------
Financial Services (4.7%)
Imperial Credit Industries, Inc. `D' 217,000 4,462,062
Legg Mason, Inc. 83,000 4,466,437
Penncorp Financial Group, Inc. 108,000 4,158,000
Transaction Systems Architects, Inc. Class A `D' 203,600 7,024,200
Vesta Insurance Group, Inc. 41,800 1,807,850
------------
21,918,549
------------
Food, Beverages & Tobacco (0.9%)
Consolidated Cigars Holdings, Inc. `D' 148,300 4,115,325
------------
</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, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
----------- ------------
COMMON STOCK (CONT'D)
<S> <C> <C>
Healthcare (7.6%)
ADAC Laboratories `D' 194,100 $ 4,585,612
Ballard Medical Products 124,800 2,503,800
Conceptus, Inc. `D' 160,000 1,480,000
Core, Inc. `D' 413,000 3,717,000
Endovascular Technologies, Inc. `D' 253,300 2,343,025
Henry Schein, Inc. `D' 99,600 3,112,500
Hooper Holmes, Inc. 190,000 4,358,125
Mid Atlantic Medical Services, Inc. `D' 280,200 4,360,612
MiniMed, Inc. `D' 89,600 2,385,600
Nitinol Medical Technologies, Inc. `D' 187,800 2,840,475
NovaCare, Inc. `D' 262,100 3,636,638
------------
35,323,387
------------
Industrial Mfg. & Processing (0.7%)
Elbit Vision Systems, Inc. `D' 267,400 3,075,100
------------
Leisure & Entertainment (3.2%)
Family Golf Centers, Inc. `D' 190,600 4,383,800
LodgeNet Entertainment Corp. `D' 3,000 30,000
Premier Parks, Inc. `D' 157,000 5,789,375
Vistana, Inc. `D' 289,000 4,479,500
------------
14,682,675
------------
Lodging & Restaurants (2.2%)
Bob Evans Farms, Inc. 98,100 1,661,569
Doubletree Corp. `D' 113,700 4,675,913
La Quinta Motor Inns, Inc. 176,000 3,850,000
------------
10,187,482
------------
Office Equipment & Supplies (1.6%)
Miller (Herman), Inc. 211,000 7,596,000
------------
Oil Services (5.8%)
Global Industries, Ltd. `D' 242,500 5,664,648
Nabors Industries, Inc. `D' 271,000 6,775,000
Petroleum Geo Services ADR `D' 152,500 7,453,438
Pride International, Inc. `D' 297,400 7,137,600
------------
27,030,686
------------
Pharmaceuticals (3.5%)
Alkermes, Inc. `D' 174,900 2,536,050
Gilead Sciences, Inc. `D' 145,800 4,027,725
SangStat Medical Corp. `D' 145,000 3,353,125
Sepracor, Inc. `D' 120,000 3,097,500
Serologicals Corp. `D' 148,800 3,422,400
------------
16,436,800
------------
</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, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
----------- ------------
COMMON STOCK (CONT'D)
<S> <C> <C>
Publishing (1.5%)
Central Newspapers, Inc. Class A 99,900 $ 7,155,338
------------
Real Estate (3.8%)
Avalon Properties, Inc. 137,000 3,921,625
Fairfield Communities, Inc.`D' 151,000 5,077,375
NHP, Inc. `D' 208,100 4,682,250
U.S. Restaurant Properties Master L.P. 137,500 4,056,250
------------
17,737,500
------------
Retail (5.4%)
Abercrombie & Fitch Co. Class A `D' 198,300 3,668,550
Borders Group, Inc. `D' 304,400 7,343,650
Fingerhut Companies, Inc. 215,000 3,749,063
Payless ShoeSource, Inc. `D' 118,600 6,485,938
Williams-Sonoma, Inc. `D' 93,000 3,975,750
------------
25,222,951
------------
Telecommunications & Equipment (6.3%)
Allen Telecommunications, Inc. 174,000 3,610,500
Brooks Fiber Properties, Inc. `D' 126,800 4,279,500
Dynatech Corp. 103,400 3,696,550
Intermedia Communications of Florida, Inc. `D' 144,800 4,687,900
McLeodUSA, Inc. Class A `D' 115,000 3,881,250
Network Equipment Technologies, Inc. `D' 133,000 2,394,000
Paging Network, Inc. `D' 233,900 2,053,934
Teledata Communications, Ltd. `D' 144,900 4,980,938
------------
29,584,572
------------
Transportation (4.7%)
Coach USA, Inc. `D' 153,000 4,064,063
Heartland Express, Inc. `D' 187,250 4,400,375
Hub Group, Inc. Class A `D' 142,500 4,292,813
Mark VII, Inc. `D' 129,900 4,156,800
Swift Transportation Co., Inc. `D' 172,700 5,094,650
------------
22,008,701
------------
TOTAL COMMON STOCK (Cost $349,543,040) 441,580,749
------------
</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, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR VALUE
----------- ------------
REPURCHASE AGREEMENT (4.1%)
<S> <C> <C>
Repurchase agreement with Goldman, Sachs & Co. dated
06/30/97 at 5.75% to be repurchased at $18,998,034 on
07/01/97. (Collateralized by $19,485,000 U.S. Treasury Note
4.75%, due 09/30/98. Market value of collateral is
$19,387,575.) (Cost $18,995,000) $18,995,000 $ 18,995,000
------------
TOTAL INVESTMENTS AT VALUE (98.8%) (Cost $368,538,040*) 460,575,749
OTHER ASSETS IN EXCESS OF LIABILITIES (1.2%) 5,416,572
------------
NET ASSETS (100.0%) (applicable to 31,882,236 shares
outstanding) $465,992,321
------------
------------
NET ASSET VALUE, offering and redemption price per share ($465,992,321 [div] 31,882,236) $14.62
</TABLE>
INVESTMENT ABBREVIATIONS
<TABLE>
<C> <S>
ADR = American Depository Receipt
</TABLE>
- --------------------------------------------------------------------------------
`D' Non-income producing security.
# Restricted security.
* Cost for federal income tax purposes is $368,833,864.
See Accompanying Notes to Financial Statements.
16
<PAGE>
<PAGE>
WARBURG PINCUS TRUST -- POST-VENTURE CAPITAL PORTFOLIO
STATEMENT OF NET ASSETS
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
COMMON STOCK (92.9%) ----------- ------------
<S> <C> <C>
Business Services (5.0%)
Gartner Group, Inc. Class A `D' 10,000 $ 359,375
Outdoor Systems, Inc. `D' 9,950 380,587
Paraxel International Corp. `D' 4,200 133,350
QuickResponse Services, Inc. `D' 4,700 170,375
Wilmar Industries, Inc. `D' 12,600 307,125
------------
1,350,812
------------
Computers (12.3%)
BMC Software, Inc. `D' 12,100 670,037
Great Plains Software, Inc. `D' 4,500 121,500
Hyperion Software Corp. `D' 4,200 93,975
McAfee Associates, Inc. `D' 5,900 372,437
Oracle Systems Corp. `D' 9,000 453,375
PeopleSoft, Inc. `D' 13,500 712,125
Rational Software Corp. `D' 21,230 356,929
Tecnomatix Technologies, Ltd. `D' 17,200 559,000
------------
3,339,378
------------
Consumer Non-Durables (2.0%)
Central Garden & Pet Co. `D' 13,100 327,500
Polo Ralph Lauren Corp. `D' 7,900 216,262
------------
543,762
------------
Electronics (18.8%)
Altera Corp. `D' 13,000 656,500
Applied Materials, Inc. `D' 4,200 297,412
Avant! Corp. `D' 5,200 168,025
Etec Systems, Inc. `D' 9,100 390,162
KLA-Tencor Instruments Corp. `D' 7,500 365,625
Lam Research Corp. `D' 5,800 214,962
Linear Technology Corp. 8,600 445,050
Maxim Integrated Products, Inc. `D' 10,100 574,437
Microchip Technology, Inc. `D' 4,500 133,875
Structural Dynamics Research Corp. `D' 17,800 467,250
Texas Instruments, Inc. 8,200 689,313
Xilinx, Inc. `D' 14,700 721,219
------------
5,123,830
------------
Energy (4.9%)
Forcenergy Inc. `D' 12,900 391,838
KCS Energy, Inc. 23,000 468,625
Meridian Resource Corp. `D' 11,700 140,400
Stone Energy Corp. `D' 8,000 219,000
United Meridian Corp. Series A `D' 3,600 108,000
------------
1,327,863
------------
</TABLE>
See Accompanying Notes to Financial Statements.
17
<PAGE>
<PAGE>
WARBURG PINCUS TRUST -- POST-VENTURE CAPITAL PORTFOLIO
STATEMENT OF NET ASSETS (CONT'D)
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
----------- ------------
COMMON STOCK (CONT'D)
<S> <C> <C>
Environmental Services (2.5%)
American Disposal Services, Inc. `D' 5,700 $ 128,250
USA Waste Services, Inc. `D' 14,100 544,613
------------
672,863
------------
Financial Services (8.8%)
Aetna, Inc. 5,000 511,875
Amvescap PLC Sponsored ADR `D' 9,200 535,900
ARM Financial Group, Inc. Class A `D' 7,600 152,000
Franklin Resources, Inc. 6,100 442,631
PMT Services, Inc. `D' 13,500 205,875
Price (T. Rowe) Associates, Inc. 5,100 263,288
Transaction Systems Architects, Inc. Class A `D' 8,600 296,700
------------
2,408,269
------------
Healthcare (8.0%)
American Oncology Resources, Inc. `D' 13,100 221,063
Columbia/HCA Healthcare Corp. 12,100 475,681
Mid Atlantic Medical Services, Inc. `D' 9,500 147,844
Oxford Health Plans, Inc. `D' 9,000 645,750
United Dental Care, Inc. `D' 4,100 61,500
United Healthcare Corp. 12,100 629,200
------------
2,181,038
------------
Leisure & Entertainment (2.2%)
Premier Parks, Inc. `D' 16,600 612,125
------------
Lodging & Restaurants (2.8%)
La Quinta Motor Inns, Inc. 9,000 196,875
Morton's Restaurant Group, Inc. `D' 28,300 562,463
------------
759,338
------------
Oil Services (2.8%)
Domain Energy Corp. `D' 10,500 141,750
Hanover Compressor Co. `D' 9,500 185,250
Pride International, Inc. `D' 18,000 432,000
------------
759,000
------------
Pharmaceuticals (1.6%)
SangStat Medical Corp. `D' 18,800 434,750
------------
Retail (6.2%)
Borders Group, Inc. `D' 17,400 419,775
Dollar Tree Stores, Inc. `D' 5,800 292,175
Rite Aid Corp. 13,730 684,784
Williams-Sonoma, Inc. `D' 7,000 299,250
------------
1,695,984
------------
</TABLE>
See Accompanying Notes to Financial Statements.
18
<PAGE>
<PAGE>
WARBURG PINCUS TRUST -- POST-VENTURE CAPITAL PORTFOLIO
STATEMENT OF NET ASSETS (CONT'D)
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
----------- ------------
COMMON STOCK (CONT'D)
<S> <C> <C>
Telecommunications & Equipment (13.1%)
3Com Corp. `D' 8,200 $ 369,000
Bay Networks, Inc. `D' 12,300 326,719
Cascade Communications Corp. `D' 13,900 383,988
Cisco Systems, Inc. `D' 9,800 657,825
Intermedia Communications of Florida, Inc. `D' 7,000 226,625
McLeodUSA, Inc. Class A `D' 14,200 479,250
Newbridge Networks Corp. `D' 3,000 130,500
Paging Network, Inc. `D' 14,600 128,206
Tellabs, Inc. `D' 5,900 329,663
WorldCom, Inc. `D' 16,420 525,440
------------
3,557,216
------------
Transportation (1.9%)
Coach USA, Inc. `D' 19,500 517,969
------------
TOTAL COMMON STOCK (Cost $22,466,586) 25,284,197
------------
PREFERRED STOCK (1.1%)
Leisure & Entertainment (1.1%)
N2K, Inc. Series G `D'# (Cost $300,000) 100,000 300,000
------------
<CAPTION>
PAR
-----------
REPURCHASE AGREEMENT (6.0%)
<S> <C> <C>
Repurchase agreement with Goldman, Sachs & Co. dated 06/30/97
at 5.75% to be repurchased at $1,633,261 on 07/01/97.
(Collateralized by $1,575,000 U.S. Treasury Note 8.25%, due
07/15/98. Market value of collateral is $1,667,138.) (Cost
$1,633,000) $1,633,000 1,633,000
------------
TOTAL INVESTMENTS AT VALUE (100.0%) (Cost $24,399,586*) 27,217,197
OTHER ASSETS IN EXCESS OF LIABILITIES (0.0%) 5,978
------------
NET ASSETS (100.0%) (applicable to 2,697,405 shares outstanding) $27,223,175
------------
------------
NET ASSET VALUE, offering and redemption price per share
($27,223,175 [div] 2,697,405) $10.09
------
------
</TABLE>
- --------------------------------------------------------------------------------
`D' Non-income producing security.
* Cost for federal income tax purposes is $24,399,794.
# Restricted security.
See Accompanying Notes to Financial Statements.
19
<PAGE>
<PAGE>
WARBURG PINCUS TRUST
STATEMENTS OF OPERATIONS
For the Six Months Ended June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERNATIONAL SMALL COMPANY POST-VENTURE
EQUITY GROWTH CAPITAL
PORTFOLIO PORTFOLIO PORTFOLIO
------------- ------------- -----------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividends $ 4,022,068 $ 398,272 $ 15,228
Interest 478,116 751,460 64,411
Foreign taxes withheld (385,185) 0 0
------------- ------------- -----------------
Total investment income 4,114,999 1,149,732 79,639
------------- ------------- -----------------
EXPENSES:
Investment advisory 1,656,300 1,677,914 139,218
Administrative services 356,055 372,870 22,276
Audit 6,098 9,220 6,446
Custodian/Sub-custodian 206,048 40,806 17,271
Trustees 1,247 1,237 1,236
Insurance 1,581 1,412 333
Interest 77,249 0 782
Legal 20,633 19,700 8,414
Offering/organizational 6,170 6,141 3,616
Printing 3,519 2,998 4,234
Registration 84 519 198
Transfer agent 1,990 2,123 902
Miscellaneous 3,153 838 656
------------- ------------- -----------------
2,340,127 2,135,778 205,582
Less fees waived and expenses reimbursed (58,818) (2,411) (49,658)
------------- ------------- -----------------
Total expenses 2,281,309 2,133,367 155,924
------------- ------------- -----------------
Net investment income (loss) 1,833,690 (983,635) (76,285)
------------- ------------- -----------------
NET REALIZED AND UNREALIZED GAIN (LOSS) FROM
INVESTMENTS AND FOREIGN CURRENCY RELATED
ITEMS:
Net realized gain (loss) from security transactions 11,273,812 (27,253,527) (1,863,655)
Net realized gain from foreign currency related
items 5,950,982 0 0
Net change in unrealized appreciation from
investments and foreign currency related items 30,109,085 45,842,606 2,639,049
------------- ------------- -----------------
Net realized and unrealized gain from
investments and
foreign currency related items 47,333,879 18,589,079 775,394
------------- ------------- -----------------
Net increase in net assets resulting from operations $49,167,569 $17,605,444 $ 699,109
------------- ------------- -----------------
------------- ------------- -----------------
</TABLE>
See Accompanying Notes to Financial Statements.
20
<PAGE>
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
21
<PAGE>
<PAGE>
WARBURG PINCUS TRUST
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY
PORTFOLIO
------------------------------
FOR THE SIX
MONTHS ENDED FOR THE
JUNE 30, YEAR ENDED
1997 DECEMBER 31,
(UNAUDITED) 1996
------------ -------------
<S> <C> <C>
FROM OPERATIONS:
Net investment income (loss) $ 1,833,690 $ 1,409,720
Net realized gain (loss) from security transactions 11,273,812 1,520,782
Net realized gain from foreign currency related items 5,950,982 1,491,912
Net change in unrealized appreciation (depreciation) from
investments and foreign currency related items 30,109,085 10,686,258
------------ -------------
Net increase in net assets resulting from operations 49,167,569 15,108,672
------------ -------------
FROM DISTRIBUTIONS:
Dividends from net investment income 0 (1,624,713)
Distributions in excess of net investment income 0 (2,505,916)
Distributions from realized gains 0 (1,520,782)
Distributions in excess of realized capital gains 0 (317,087)
------------ -------------
Net decrease in net assets from distributions 0 (5,968,498)
------------ -------------
FROM CAPITAL SHARE TRANSACTIONS:
Proceeds from sale of shares 94,747,406 333,352,387
Reinvested dividends 0 5,968,497
Net asset value of shares redeemed (46,856,381) (114,779,643)
------------ -------------
Net increase in net assets from capital share
transactions 47,891,025 224,541,241
------------ -------------
Net increase in net assets 97,058,594 233,681,415
NET ASSETS:
Beginning of period 298,218,283 64,536,868
------------ -------------
End of period $395,276,877 $ 298,218,283
------------ -------------
------------ -------------
Undistributed net investment income/(distribution in excess of
net investment income) $ 6,408,299 $ (1,376,373)
------------ -------------
------------ -------------
</TABLE>
See Accompanying Notes to Financial Statements.
22
<PAGE>
<PAGE>
<TABLE>
<CAPTION>
SMALL COMPANY GROWTH POST-VENTURE CAPITAL
PORTFOLIO PORTFOLIO
----------------------------- ------------------------------------
FOR THE SIX FOR THE SIX FOR THE PERIOD
MONTHS ENDED FOR THE MONTHS ENDED SEPTEMBER 30, 1996
JUNE 30, YEAR ENDED JUNE 30, (COMMENCEMENT OF
1997 DECEMBER 31, 1997 OPERATIONS) THROUGH
(UNAUDITED) 1996 (UNAUDITED) DECEMBER 31, 1996
------------ ------------ ------------ -------------------
<S> <C> <C> <C>
$ (983,635) $(1,546,927) $ (76,285) $ 4,291
(27,253,527) (17,819,175) (1,863,655) (48,100)
0 0 0 0
45,842,606 34,312,085 2,639,049 178,562
------------ ------------ ------------ ----------
17,605,444 14,945,983 699,109 134,753
------------ ------------ ------------ ----------
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
------------ ------------ ------------ ----------
0 0 0 0
------------ ------------ ------------ ----------
182,974,370 434,899,200 28,911,593 12,267,019
0 0 0 0
(73,985,050) (207,892,540) (14,787,059) (2,240)
------------ ------------ ------------ ----------
108,989,320 227,006,660 14,124,534 12,264,779
------------ ------------ ------------ ----------
126,594,764 241,952,643 14,823,643 12,399,532
339,397,557 97,444,914 12,399,532 0
------------ ------------ ------------ ----------
$465,992,321 $339,397,557 $27,223,175 $12,399,532
------------ ------------ ------------ ----------
------------ ------------ ------------ ----------
$ 0 $ 0 $ 0 $ 4,291
------------ ------------ ------------ ----------
------------ ------------ ------------ ----------
</TABLE>
See Accompanying Notes to Financial Statements.
23
<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 FOR THE PERIOD
MONTHS ENDED JUNE 30, 1995
JUNE 30, FOR THE (COMMENCEMENT OF
1997 YEAR ENDED OPERATIONS) THROUGH
(UNAUDITED) DECEMBER 31, 1996 DECEMBER 31, 1995
------------ ----------------- -------------------
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $11.48 $ 10.65 $ 10.00
----- ----- -----
Income from Investment Operations:
Net Investment Income 0.08 0.00 0.03
Net Gain from Securities and Foreign
Currency Related Items (both
realized and unrealized) 1.64 1.06 0.70
----- ----- -----
Total From Investment Operations 1.72 1.06 0.73
----- ----- -----
Less Distributions:
Dividends from Net Investment Income 0.00 (0.06) (0.01)
Distributions in Excess of Net
Investment Income 0.00 (0.10) (0.07)
Distributions from Realized Gains 0.00 (0.06) 0.00
Distributions in Excess of Realized
Gains 0.00 (0.01) 0.00
----- ----- -----
Total Distributions 0.00 (0.23) (0.08)
----- ----- -----
NET ASSET VALUE, END OF PERIOD $13.20 $ 11.48 $ 10.65
----- ----- -----
----- ----- -----
Total Return 14.98%`D' 9.98% 7.30%`D'
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000s) $395,277 $298,218 $64,537
Ratios to average daily net assets:
Operating expenses 1.36%* 1.36% 1.44%*
Net investment income 1.11%* 0.64% 0.48%*
Decrease reflected in above operating
expense ratios due to
waivers/reimbursements 0.04%* 0.04% 0.77%*
Portfolio Turnover Rate 34.33%*`D' 30.82% 8.31%`D'
Average Commission Rate # $0.0205 $0.0232 --
</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 charged. The Average Commission Rate is not required for fiscal
periods beginning before September 1, 1995.
See Accompanying Notes to Financial Statements.
24
<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 FOR THE PERIOD
MONTHS ENDED JUNE 30, 1995
JUNE 30, FOR THE (COMMENCEMENT OF
1997 YEAR ENDED OPERATIONS) THROUGH
(UNAUDITED) DECEMBER 31, 1996 DECEMBER 31, 1995
------------ ----------------- -------------------
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $14.25 $ 12.51 $ 10.00
----- ----- -----
Income from Investment Operations:
Net Investment Loss (0.03) (0.06) (0.01)
Net Gain on Securities (both realized
and unrealized) 0.40 1.80 2.52
----- ----- -----
Total From Investment Operations 0.37 1.74 2.51
----- ----- -----
NET ASSET VALUE, END OF PERIOD $14.62 $ 14.25 $ 12.51
----- ----- -----
----- ----- -----
Total Return 2.67%`D' 13.91% 25.10%`D'
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000s) $465,992 $339,398 $97,445
Ratios to average daily net assets:
Operating expenses 1.14%* 1.16% 1.25%*
Net investment loss (0.53%)* (0.66%) (0.36%)*
Decrease reflected in above operating
expense ratios due to
waivers/reimbursements 0.00% 0.01% 0.25%*
Portfolio Turnover Rate 38.23%`D' 101.50% 34.25%`D'
Average Commission Rate # $0.0541 $0.0538 --
</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 charged. The Average Commission Rate is not required for fiscal
periods beginning before September 1, 1995.
See Accompanying Notes to Financial Statements.
25
<PAGE>
<PAGE>
WARBURG PINCUS TRUST -- POST-VENTURE CAPITAL PORTFOLIO
FINANCIAL HIGHLIGHTS
(For a Share of the Portfolio Outstanding Throughout Each Period)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE SIX FOR THE PERIOD
MONTHS ENDED SEPTEMBER 30, 1996
JUNE 30, (COMMENCEMENT OF
1997 OPERATIONS) THROUGH
(UNAUDITED) DECEMBER 31, 1996
------------ ---------------------
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 9.76 $ 10.00
----- ------
Income from Investment Operations:
Net Investment Loss (0.03) 0.00
Net Gain (Loss) from Securities and Foreign Currency
Related Items (both realized and unrealized) 0.36 (0.24)
----- ------
Total From Investment Operations 0.33 (0.24)
----- ------
NET ASSET VALUE, END OF PERIOD $10.09 $ 9.76
----- ------
----- ------
Total Return 3.38%`D' (2.40%)`D'
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000s) $27,223 $12,400
Ratios to average daily net assets:
Operating expenses 1.40%* 1.40%*
Net investment income (loss) (0.68%)* 0.80%*
Decrease reflected in above operating expense ratios
due to waivers/reimbursements 0.45%* 4.16%*
Portfolio Turnover Rate 126.23%`D' 6.80%`D'
Average Commission Rate # $0.0523 $0.0491
</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 charged. The Average Commission Rate is not required for fiscal
periods beginning before September 1, 1995.
See Accompanying Notes to Financial Statements.
26
<PAGE>
<PAGE>
WARBURG PINCUS TRUST
NOTES TO FINANCIAL STATEMENTS
June 30, 1997 (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 four investment funds (the 'Portfolios'): International Equity
Portfolio is a diversified investment fund that seeks long-term capital
appreciation by investing primarily in a broadly diversified portfolio of equity
securities companies that have their principal business activities and interests
outside the U.S.; Small Company Growth Portfolio is a non-diversified investment
fund that seeks capital growth by investing in equity securities of small-sized
domestic companies and Post-Venture Capital Portfolio is a diversified
investment fund that seeks long-term growth of capital by investing primarily in
equity securities of companies considered to be in their post-venture-capital
stage of development. 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 Emerging Markets Portfolio had not
commenced investment operations as of June 30, 1997.
The net asset value of each Portfolio is determined daily as of the close of
regular trading on the New York Stock Exchange. Each Portfolio's investments are
valued at market value, which is generally determined using the last reported
sales price. If no sales are reported, investments are generally valued at the
last reported mean price. 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.
27
<PAGE>
<PAGE>
WARBURG PINCUS TRUST
NOTES TO FINANCIAL STATEMENTS (CONT'D)
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES (CONT'D)
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 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.
For U.S. federal income tax purposes, realized losses incurred after October
31, 1996, within the fiscal year, are deemed to arise on the first business day
of the following fiscal year. The International Equity Portfolio incurred and
elected to defer such losses of $89,740.
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. Costs incurred by the Portfolios in
connection with the offering of their shares have been deferred and are being
amortized over a one year period 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 Trust, together with other Warburg-advised funds (collectively the
'Warburg Funds'), has established committed and uncommitted line of credit
facilities with certain banks for temporary or emergency purposes primarily
relating to fund share redemptions and funding payments of dividend or capital
gain distributions. Under the terms of the committed line of credit, the Warburg
Funds with access to the facility pay a commitment fee at a rate of .10% per
annum on the amount of the line of credit. In addition, under the terms of both
the committed and uncommitted facilities, the Warburg Funds will pay interest on
borrowings at the bank's base rate plus .55%. Aggregate borrowings for each fund
under these credit facilities may not exceed the lower of (a) the maximum amount
permitted by such fund's investment policies and restrictions or (b)
thirty-three and one-third percent (33 1/3%) of such fund's total assets. At
June 30,
28
<PAGE>
<PAGE>
WARBURG PINCUS TRUST
NOTES TO FINANCIAL STATEMENTS (CONT'D)
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
1997 there were no outstanding balances under these line of credit facilities
for any of the Portfolios.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statement and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from these estimates.
THE PORTFOLIOS HAVE AN ARRANGEMENT WITH THEIR TRANSFER AGENT WHEREBY INTEREST
EARNED ON UNINVESTED CASH BALANCES WAS USED TO OFFSET A PORTION OF THE TRANSFER
AGENT EXPENSE. FOR THE PERIOD ENDED JUNE 30, 1997, THE INTERNATIONAL EQUITY
PORTFOLIO, THE SMALL COMPANY GROWTH PORTFOLIO AND THE POST-VENTURE CAPITAL
PORTFOLIO RECEIVED CREDITS OR REIMBURSEMENTS OF $2,010, $2,411 AND $661,
RESPECTIVELY UNDER THIS ARRANGEMENT.
2. INVESTMENT ADVISER, CO-ADMINISTRATORS AND DISTRIBUTOR
Warburg, Pincus Counsellors, Inc. ('Warburg'), which is indirectly controlled
by Warburg, Pincus & Co., serves as each Portfolio's investment adviser. For its
investment advisory services, the International Equity Portfolio, the Small
Company Growth Portfolio and the Post-Venture Capital Portfolio pay Warburg a
fee calculated at an annual rate of 1.00%, .90% and 1.25%, respectively, of each
Portfolio's average daily net assets. For the period ended June 30, 1997,
investment advisory fees and waivers were as follows:
<TABLE>
<CAPTION>
GROSS NET
PORTFOLIO ADVISORY FEE WAIVER ADVISORY FEE
- ---------------------------------------- ------------ -------- ------------
<S> <C> <C> <C>
International Equity $1,656,300 $(56,808) $1,599,492
Small Company Growth 1,677,914 0 1,677,914
Post-Venture Capital 139,218 (37,859) 101,359
</TABLE>
Abbott Capital Management, L.P. ('Abbott') serves as sub-investment adviser
for the Post-Venture Capital Portfolio's assets invested in U.S. or foreign
private limited partnerships or other investment funds ('Private Fund
Investments'). From its investment advisory fee, Warburg pays Abbott a fee of
.55% per annum of the value of Private Fund Investments as of the end of each
calendar quarter. No compensation is paid by the Post-Venture Capital Portfolio
to Abbott for its sub-investment advisory services. Effective January 17, 1997,
the Sub-Advisory Agreement was amended. Under the amended Agreement, Warburg
pays Abbott a quarterly fee at the annual rate of 1.00% of the Fund's average
daily net assets. No compensation is paid by the Post-Venture Capital Fund to
Abbott for its sub-investment advisory services.
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
29
<PAGE>
<PAGE>
WARBURG PINCUS TRUST
NOTES TO FINANCIAL STATEMENTS (CONT'D)
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
2. INVESTMENT ADVISER, CO-ADMINISTRATORS AND DISTRIBUTOR (CONT'D)
of .10% of each Portfolio's average daily net assets. For the period ended June
30, 1997, administrative services fees earned by CFSI were as follows:
<TABLE>
<CAPTION>
PORTFOLIO CO-ADMINISTRATION FEE
- ------------------------------------------------------ ---------------------
<S> <C>
International Equity $ 165,630
Small Company Growth 186,435
Post-Venture Capital 11,138
</TABLE>
For its administrative services for the Small Company Growth Portfolio and
the Post-Venture Capital Portfolio, PFPC currently receives a fee calculated at
an annual rate of .10% on each Portfolio's first $500 million in average daily
net assets, .075% on the next $1 billion in average daily net assets and .05% of
average daily net assets in excess of $1.5 billion. 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 period ended June 30, 1997, 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 $ 190,425 0 $ 190,425
Small Company Growth 186,435 0 186,435
Post-Venture Capital 11,138 $(11,138) 0
</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 period ended June 30, 1997, purchases and sales of investment
securities (excluding short-term investments) were as follows:
<TABLE>
<CAPTION>
PORTFOLIO PURCHASES SALES
- ------------------------------------------------ ------------ ------------
<S> <C> <C>
International Equity $144,683,138 $107,463,397
Small Company Growth 237,603,691 136,245,625
Post-Venture Capital 37,954,154 24,840,591
</TABLE>
At June 30, 1997, 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 $ 59,559,081 $(17,612,252) $ 41,946,829
Small Company Growth 98,749,166 (7,007,281) 91,741,885
Post-Venture Capital 3,233,436 (416,033) 2,817,403
</TABLE>
30
<PAGE>
<PAGE>
WARBURG PINCUS TRUST
NOTES TO FINANCIAL STATEMENTS (CONT'D)
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
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 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, 1997, the International Equity Portfolio had the following open
forward currency contracts:
<TABLE>
<CAPTION>
FOREIGN UNREALIZED
FORWARD CURRENCY EXPIRATION CURRENCY CONTRACT CONTRACT FOREIGN EXCHANGE
CONTRACT DATE TO BE SOLD AMOUNT VALUE GAIN/(LOSS)
- ---------------- ---------- --------------- ----------- ----------- ----------------
<S> <C> <C> <C> <C> <C>
French Francs 09/08/97 64,830,000 $11,196,891 $11,083,377 $113,514
French Francs 09/08/97 14,000,000 2,455,742 2,393,449 62,293
Japanese Yen 08/26/97 747,473,300 6,535,000 6,576,397 (41,397)
Japanese Yen 08/26/97 2,688,080,005 23,465,000 23,650,185 (185,185)
----------- ----------- -------
$43,652,633 $43,703,408 $(50,775)
----------- ----------- -------
----------- ----------- -------
</TABLE>
5. SWAP TRANSACTIONS
The International Equity Portfolio has entered into a total return swap
agreement (which represents approximately 1.00% of its net assets at June 30,
1997) dated March 21, 1997, where the Portfolio receives a quarterly payment
representing the total return (defined as market appreciation and dividend
income) on a basket of Korean common stocks ('Common Stocks'). In return, the
Portfolio pays quarterly the Libor rate (London Interbank Offered Rate), plus
1.97% per annum (7.732% on June 30, 1997) on the market value of the Common
Stocks ('Notional Amount') which is currently $4,000,000. The Notional Amount is
marked-to-market on each quarterly reset date. In the event that the Common
Stocks decline in value, the Portfolio will be required to pay quarterly the
amount of any depreciation in value from the Notional Amount. The swap agreement
will terminate on April 3, 2000.
During the term of the swap transaction, changes in the value of the Common
Stocks as compared to the Notional Amount are recognized as unrealized gain or
loss. Dividend income for the Common Stocks is recorded on the ex-dividend date.
Interest expense is accrued daily. At June 30, 1997, the Portfolio has recorded
unrealized gains of $213,677 and interest payable of $77,317 on the swap
transaction.
31
<PAGE>
<PAGE>
WARBURG PINCUS TRUST
NOTES TO FINANCIAL STATEMENTS (CONT'D)
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
6. RESTRICTED SECURITIES
A summary of the restricted securities held at June 30, 1997 follows:
<TABLE>
<CAPTION>
SECURITY ACQUISITION MARKET PERCENTAGE
PORTFOLIO DESCRIPTION DATE COST VALUE OF NET ASSETS
- ------------------ -------------------- ----------- -------- -------- -------------
<S> <C> <C> <C> <C> <C>
Small Company
Growth Portfolio Southern Mineral Corp. 12/20/96 $794,813 $883,125 0.19%
Post-Venture
Capital Growth N2K Inc. Series G Pfd. 04/25/97 300,000 300,000 1.10%
</TABLE>
7. CAPITAL SHARE TRANSACTIONS
The International Equity Portfolio, the Small Company Growth Portfolio and
the Post-Venture Capital 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 POST-VENTURE CAPITAL PORTFOLIO
FOR THE SIX --------------------------------- ----------------------------------------
MONTHS ENDED FOR THE YEAR FOR THE SIX FOR THE YEAR FOR THE SIX SEPTEMBER 30, 1996
JUNE 30, ENDED MONTHS ENDED ENDED MONTHS ENDED (COMMENCEMENT OF
1997 DECEMBER 31, JUNE 30, 1997 DECEMBER 31, JUNE 30, 1997 OPERATIONS) THROUGH
(UNAUDITED) 1996 (UNAUDITED) 1996 (UNAUDITED) DECEMBER 31, 1996
------------ ------------ ------------------- ------------ ------------------- -------------------
<S> <C> <C> <C> <C> <C> <C>
Shares sold 7,890,293 29,490,915 13,439,844 31,233,075 2,995,423 1,270,999
Shares issued
to
shareholders
on
reinvestment
of dividends 0 531,478 0 0 0 0
Shares
redeemed (3,934,879) (10,101,449) (5,379,591) (15,202,857) (1,568,789) (228)
------------ ------------ -------- ------------ -------- -------
Net increase
in shares
outstanding 3,955,414 19,920,944 8,060,253 16,030,218 1,426,634 1,270,771
------------ ------------ -------- ------------ -------- -------
------------ ------------ -------- ------------ -------- -------
</TABLE>
8. LIABILITIES
At June 30, 1997, the Portfolios had the following liabilities:
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY SMALL COMPANY GROWTH POST-VENTURE CAPITAL
PORTFOLIO PORTFOLIO PORTFOLIO
-------------------- -------------------- --------------------
<S> <C> <C> <C>
Payable for securities purchased (at
value) $9,029,339 $3,285,134 $613,227
Investment advisory fee payable 290,981 329,845 21,284
</TABLE>
9. NET ASSETS
At June 30, 1997, capital contributions, undistributed net investment income
and accumulated net realized loss from security transactions have been adjusted
for current period permanent book/tax differences which arose principally from
differing book/tax treatments of foreign currency transactions. The
International Equity Portfolio reclassified $5,950,982 from accumulated net
realized gain (loss) from foreign currency related items to undistributed net
32
<PAGE>
<PAGE>
WARBURG PINCUS TRUST
NOTES TO FINANCIAL STATEMENTS (CONT'D)
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
investment income. The Small Company Growth Portfolio and the Post-Venture
Capital Portfolio reclassified $983,635 and $71,994, respectively from
accumulated net investment loss to capital contributions. Net investment income,
net realized gain (loss) on investments and net assets were not affected by this
reclassification.
Net assets at June 30, 1997, consisted of the following:
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY SMALL COMPANY GROWTH POST-VENTURE CAPITAL
PORTFOLIO PORTFOLIO PORTFOLIO
-------------------- -------------------- --------------------
<S> <C> <C> <C>
Capital contributed, net $335,846,805 $419,818,550 $ 26,317,319
Undistributed net investment income 6,408,299 0 0
Accumulated net realized gain (loss)
from security transactions 10,890,437 (45,863,937) (1,911,755)
Net unrealized appreciation from
investments and foreign currency
related items 42,131,336 92,037,708 2,817,611
----------- ----------- ----------
Net assets $395,276,877 $465,992,321 $ 27,223,175
----------- ----------- ----------
----------- ----------- ----------
</TABLE>
10. CAPITAL LOSS CARRYOVER
For the fiscal year ended December 31, 1997, capital loss carryovers
available to offset possible future capital gains of each Portfolio were as
follows:
<TABLE>
<CAPTION>
CAPITAL LOSS CARRYOVER
EXPIRING IN
------------------------ TOTAL CAPITAL
PORTFOLIO 2003 2004 LOSS CARRYOVER
- ---------------------------------------------- -------- ----------- --------------
<S> <C> <C> <C>
Small Company Growth $659,487 $17,655,100 $ 18,314,587
Post-Venture Capital 0 47,891 47,891
</TABLE>
33
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[Logo]
P.O. BOX 9030, BOSTON, MA 02205-9030
800-369-2728
COUNSELLORS SECURITIES INC., DISTRIBUTOR. TREQF-3-0697
STATEMENT OF DIFFERENCES
------------------------
The dagger symbol shall be expressed as `D'
The division sign shall be expressed as [div]
