<PAGE>
<PAGE>
ANNUAL
REPORT
December 31, 1996
WARBURG PINCUS TRUST
INTERNATIONAL EQUITY PORTFOLIO
SMALL COMPANY GROWTH PORTFOLIO
POST-VENTURE CAPITAL PORTFOLIO
[Logo]
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.
A Prospectus containing more complete information, including
charges and expenses and, where applicable, the special
considerations and risks associated with international
investing, may be obtained by calling 800-369-2728 or by writing
to Warburg Pincus, P.O. Box 9030, Boston, MA 02205-9030.
Investors should read the Prospectus carefully before investing.
<PAGE>
<PAGE>
The views of the Portfolios' management are as of the date of the letters and
portfolio holdings described in this annual report are as of December 31, 1996;
these views and portfolio holdings may have changed subsequent to these dates.
Nothing in this annual report is a recommendation to purchase or sell
securities.
<PAGE>
<PAGE>
WARBURG PINCUS TRUST -- INTERNATIONAL EQUITY PORTFOLIO
ANNUAL INVESTMENT ADVISER'S REPORT
- --------------------------------------------------------------------------------
Dear Shareholder: February 7, 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 12 months ended December 31, 1996, the Portfolio had a total return
of 9.98%. Its benchmark indexes, the Morgan Stanley Europe, Australasia and Far
East (EAFE) Index and the Lipper International Funds Index, had total returns of
6.05% and 14.43%, respectively, for the period.
The Portfolio's single-largest country weighting through the period was
Japan, which performed strongly in the first half of 1996 but struggled in the
second half and ultimately finished the year with a loss. Weighing on the
Japanese market were worries over the economy's health and, more recently,
concerns about the near-term effects of deregulation on specific sectors of
Japan's economy. The Portfolio was negatively impacted by the broad market's
weakness, but managed to outperform most popular benchmarks (e.g., the Nikkei
225 Index) through timely stock selection. In fact, a number of its holdings
(specifically, large-cap, export-oriented companies like Sony, Canon, Honda and
TDK, which were well-represented in the Portfolio during the period) enjoyed
relatively strong performance and contributed positively to the Portfolio's
returns. More recently, however, we have been reducing our exposure to Japan,
reflecting our cautious outlook on the market's near term prospects.
We hedged much of the Portfolio's yen exposure through the reporting
period, and continue to do so. This had a favorable impact on the Portfolio's
performance in 1996, given the strength of the U.S. dollar against the Japanese
currency.
Most of the rest of the Portfolio's Asian exposure contributed positively
to its performance during the period. Particularly strong gains came from our
holdings in Hong Kong, China, Taiwan and Indonesia, all of which had gains of
over 25% for the 12 months, based on popular market measures. One market that
performed poorly for the Portfolio was South Korea, which was hurt by concerns
over weakness in the economy and, late in the year, a plunge in local-investor
sentiment due to the announcement of a labor-reform law. We continue to find
value in the South Korean market, however, hence we have maintained our
exposure. Indeed, by several measures South Korea now stands as one of the
cheapest markets in the world, and we believe that there is the potential for a
significant recovery in 1997.
The Portfolio's European holdings enjoyed strong returns in 1996, as these
markets were fueled by optimism regarding the prospects for monetary union and
by the continued low level of interest rates. Among the strongest performers for
the Portfolio were its holdings in Spain and Germany, as well as its Nordic
stocks collectively. We continue to find value in European markets and believe
that the Portfolio is well-positioned in terms of its specific holdings as 1997
begins.
Richard H. King
Portfolio Manager
<PAGE>
<PAGE>
WARBURG PINCUS TRUST -- INTERNATIONAL EQUITY PORTFOLIO
ANNUAL INVESTMENT ADVISER'S REPORT (CONT'D)
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GROWTH OF $10,000 INVESTED IN SHARES OF WARBURG PINCUS TRUST --
INTERNATIONAL EQUITY PORTFOLIO SINCE INCEPTION AS OF DECEMBER 31, 1996
The graph below illustrates the hypothetical investment of $10,000 in
Shares of Warburg Pincus Trust -- International Equity Portfolio (the
'Portfolio') from June 30, 1995 (inception) to December 31, 1996, compared to
the Morgan Stanley Europe, Australasia and Far East Index* ('EAFE') for the same
time period.
[GRAPH]
Returns are historical and include changes 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.
From time to time, the Fund's investment adviser and co-administrators may
waive some fees and/or reimburse some expenses, without which performance would
be lower. Waivers and/or reimbursements are subject to change.
- ------------
* EAFE is an unmanaged index of international equities with no defined
investment objective that includes reinvestment of dividends and is
compiled by Morgan Stanley Capital International.
2
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WARBURG PINCUS TRUST -- SMALL COMPANY GROWTH PORTFOLIO
ANNUAL INVESTMENT ADVISER'S REPORT
- --------------------------------------------------------------------------------
Dear Shareholder: February 7, 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 12 months ended December 31, 1996, the Portfolio had a total return
of 13.91%, vs. returns of 11.27% for the Russell 2000 Growth Index and 14.51%
for the Lipper Small Company Growth Funds Index.
The Portfolio saw positive performance from many of its holdings during the
period. Particularly strong showings for the full year came from the Portfolio's
business-services stocks, one of our largest areas of concentration.
Collectively, these companies have benefited from businesses' cost-cutting and
outsourcing efforts, a dominant theme across corporate America in recent years
and one that shows few signs of slowing. The Portfolio's holdings comprise
companies whose prospects we view particularly favorably, and their strong
performance through the reporting period was encouraging.
Technology stocks also contributed to the Portfolio's performance,
notwithstanding the sector's broad sell-off in June and July. Stocks that
performed particularly well for the Portfolio, especially in the second half of
the year, were its holdings in semiconductor-related companies, which rose
strongly on evidence of ongoing improvement in the industry's supply/demand
balance. We continue to find significant investment opportunities in this area,
as the accelerated demand for information access from individuals, corporations
and government, coupled with the ongoing quest for productivity enhancement,
continues to drive the demand for innovative new products.
Energy, including oil services, is another area that performed well for the
Portfolio, and proved one of the market's strongest sectors throughout 1996. We
continue to build our energy exposure, given the relative underinvestment in the
industry in recent years and the steady increase in demand. We believe that the
potential exists for demand to rise strongly in 1997 and 1998, especially if the
ongoing low level of interest in many countries (e.g., in Japan and throughout
Europe) leads to a synchronized global economic recovery. Many smaller companies
are well-suited to take advantage of this environment, and we believe that the
prospects for the Portfolio's holdings are particularly favorable.
Other areas of strength for the Portfolio in 1996, and ones in which we
continue to find attractive investments, include telecommunications, where vast
opportunities are unfolding as a result of deregulation, and specialty consumer
companies, including retailers.
3
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<PAGE>
WARBURG PINCUS TRUST -- SMALL COMPANY GROWTH PORTFOLIO
ANNUAL INVESTMENT ADVISER'S REPORT (CONT'D)
- --------------------------------------------------------------------------------
An area that weighed significantly on the Portfolio's 1996 performance was
health care, and heading into 1997 we continue to view the sector cautiously.
The financial problems of the Medicare trust fund, the prospect of a new Food
and Drug Administration commissioner and the extreme difficulty in predicting
the clinical progress of biotechnology companies make for a challenging
investment environment. Accordingly, while we believe that there are selective
values to be found, the Portfolio is underweighted in health care relative to
its benchmark indexes, and will likely remain so until clearer prospects emerge.
Our outlook on the prospects for small-cap stocks in 1997, both on an
absolute basis and relative to large-cap issues, is positive. Smaller companies
continue, for the most part, to generate superior rates of earnings growth
compared to their large-cap counterparts, which should lead to increasing
investor attention in the months ahead. Also arguing for small caps are their
valuations, which stand at very attractive levels on a historical basis,
particularly within the context of the past two years. Small-cap stocks also
stand to benefit in relative terms from the strength in the U.S. dollar, which
has had a negative impact on the earnings of large-cap, multinational firms but
relatively limited effect on the earnings of smaller, more domestically oriented
companies.
<TABLE>
<S> <C>
Elizabeth B. Dater Stephen J. Lurito
Co-Portfolio Manager Co-Portfolio Manager
</TABLE>
4
<PAGE>
<PAGE>
WARBURG PINCUS TRUST -- SMALL COMPANY GROWTH PORTFOLIO
ANNUAL INVESTMENT ADVISER'S REPORT (CONT'D)
- --------------------------------------------------------------------------------
GROWTH OF $10,000 INVESTED IN SHARES OF WARBURG PINCUS TRUST --
SMALL COMPANY GROWTH PORTFOLIO SINCE INCEPTION AS OF DECEMBER 31, 1996
The graph below illustrates the hypothetical investment of $10,000 in
Shares of Warburg Pincus Trust -- Small Company Growth Portfolio (the
'Portfolio') from June 30, 1995 (inception) to December 31, 1996, compared to
the Lipper Small Company Growth Funds Index* ('Lipper') and the Russell 2000
Growth Index** ('Russell') for the same time period.
[GRAPH]
Returns are historical and include changes 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.
From time to time, the Fund's investment adviser and co-administrators may
waive some fees and/or reimburse some expenses, without which performance would
be lower. Waivers and/or reimbursements are subject to change.
- ------------
* The Lipper Small Company Growth Funds Index is an equally weighted index of
the 30 largest Small Company Growth Funds.
** The Russell 2000 Growth Index is an unmanaged index of securities in the
Russell 2000 Index with a greater-than-average growth orientation. The
Russell 2000 Index is a measure of small- capitalization stocks.
*** The Portfolio changed its comparative index in the above chart from the
Russell 2000 Index used in the preceding year to the Russell 2000 Growth
Index. The primary reason for this change is that the Portfolio invests in
growth companies and the Russell 2000 Growth Index, is more appropriate
than the Russell 2000 Index, which includes both value and growth
companies. The one-year performance for the period ending 12/31/96 for the
Russell 2000 Growth Index and Russell 2000 Index was 11.27% and 16.50%,
respectively.
5
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<PAGE>
WARBURG PINCUS TRUST -- POST-VENTURE CAPITAL PORTFOLIO
ANNUAL INVESTMENT ADVISER'S REPORT
- --------------------------------------------------------------------------------
Dear Shareholder: February 7, 1997
The 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 by
Warburg, Pincus Counsellors, Inc., the Portfolio's investment adviser, to be in
their post-venture-capital stage of development.
For the three months ended December 31, 1996 (the Portfolio's inception
date was September 30, 1996), the Portfolio had a total return of - 2.40%*. Its
benchmark indexes, the Lipper Growth Funds Index and the Russell 2000 Growth
Index, had returns of 5.80% and 0.27%, respectively, for the period. The Warburg
Pincus/Venture Economics Post-Venture Capital Index (PVCI)** had a total return
of - 3.16% for the three months.
While clearly a disappointing debut for the Portfolio, we believe that the
Portfolio's longer-term results can more than compensate investors for their
patience during short-term periods of underperformance. We believe investors
should take a similarly long-term approach, especially given the types of high-
growth companies in which the Portfolio invests.
The Portfolio targets companies that have, within the past 10 years,
received venture-capital backing, distributed their securities to
venture-capital investors or engaged in an initial public offering. It is our
belief that such venture-backed companies can have above-average earnings
prospects vs. companies that lacked such backing, and that this stands to be
reflected in their share prices over time.
The Portfolio has the latitude to invest in companies of any size (i.e.,
market capitalization). Investors should be aware, however, that many companies
that receive venture-capital financing do so at an early stage of their
development. We anticipate that the average market capitalization of stocks held
in the Portfolio will be less than $1 billion at the time of investment. Many of
our investments will likely be in companies at the time of their initial public
offering or shortly thereafter. Accordingly, we consider the Portfolio most
suitable for the aggressive portion of an investor's holdings.
As of December 31, the Portfolio held a diversified mix of industries, with
its greatest concentrations in the technology sector (broadly defined to include
computers and electronics), health care (including pharmaceuticals) and
telecommunications & equipment. We believe that our specific holdings in these
areas, and our other portfolio holdings as well, have attractive prospects for
6
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<PAGE>
WARBURG PINCUS TRUST -- POST-VENTURE CAPITAL PORTFOLIO
ANNUAL INVESTMENT ADVISER'S REPORT (CONT'D)
- --------------------------------------------------------------------------------
appreciation relative to the broader market in 1997, and we look forward to a
rewarding year.
<TABLE>
<S> <C>
Elizabeth B. Dater Stephen J. Lurito
Co-Portfolio Manager Co-Portfolio Manager
</TABLE>
- ------------
* Returns are historical and include changes 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.
From time to time, the Fund's investment adviser and co-administrators may
waive some fees and/or reimburse some expenses, without which performance
would be lower. Waivers and/or reimbursements are subject to change.
** The Warburg Pincus/Venture Economics Post-Venture Capital Index is a
market-valued index that measures the performance of public stocks of
companies that have received financing from venture capital or buyouts from
limited partnerships and gone public, or received the financing within the
last 10 years. The index, which at present comprises over 1,200 companies,
seeks to track the universe of venture-backed stocks from the point of
going public until publicly traded for 10 years, at which time they are
removed from the index. The index is calculated monthly and without
dividends.
7
<PAGE>
<PAGE>
WARBURG PINCUS TRUST -- INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF NET ASSETS
December 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
----------- ------------
<S> <C> <C>
COMMON STOCK (95.6%)
Argentina (3.1%)
Banco de Galicia & Buenos Aires SA ADR 23,566 $ 571,476
Banco Frances del Rio de la Plata SA ADR 28,750 790,625
Telefonica de Argentina SA ADR 133,700 3,459,488
YPF SA ADR 172,700 4,360,675
------------
9,182,264
------------
Australia (4.4%)
Accor Asia Pacific Co., Ltd. 379,879 229,379
Boral Ltd. 1,136,500 3,232,558
David Jones Ltd. 755,000 1,049,733
Lend Lease Corp., Ltd. 217,842 4,223,041
Orogen Minerals Ltd. ADR `D' 502,600 1,169,995
Qantas Airways Ltd. 678,114 1,131,399
Qantas Airways Ltd. ADR 128,000 2,134,912
------------
13,171,017
------------
Austria (2.1%)
Boehler-Uddeholm AG 22,126 1,585,836
V.A. Technologie AG 29,385 4,618,497
------------
6,204,333
------------
Belgium (0.4%)
Barco Industries N.V. 7,800 1,347,541
------------
Brazil (1.1%)
Panamerican Beverages, Inc. Class A 69,400 3,253,125
------------
Canada (0.3%)
Alcan Aluminum Ltd. 29,700 998,663
------------
Chile (1.6%)
Banco de A. Edwards ADR 110,500 1,982,094
Enersis SA ADR 102,000 2,830,500
------------
4,812,594
------------
China (1.4%)
Cheung Kong Infrastructure Holdings Ltd. `D' 396,200 1,050,181
Guangshen Railway Co., Ltd. `D' 1,447,368 626,931
Guangshen Railway Co., Ltd. ADR `D' 86,547 1,785,032
Henderson China Holding Ltd. 265,000 603,051
Jilin Chemical Industrial Co., Ltd. Class H 47,200 7,324
Jilin Chemical Industrial Co., Ltd. Class H ADR 3,950 57,769
------------
4,130,288
------------
</TABLE>
See Accompanying Notes to Financial Statements.
8
<PAGE>
<PAGE>
WARBURG PINCUS TRUST -- INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF NET ASSETS (CONT'D)
December 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
----------- ------------
<S> <C> <C>
COMMON STOCK (CONT'D)
Denmark (1.2%)
International Service System AS Class B 136,065 $ 3,582,178
------------
Finland (1.6%)
Metra Oy Class B 35,245 1,962,527
Valmet Corp. Class A 157,934 2,761,913
------------
4,724,440
------------
France (5.9%)
Assurances Generales de France 114,500 3,703,176
Axime (Ex Segin) `D' 1,800 208,534
Compagnie Bancaire SA 29,500 3,497,393
Compagnie Generale Des Eaux 24,000 2,979,726
Lagardere S.C.A. 132,479 3,642,597
Total Cie Franc Des Petroles SA ADR 6,118 246,249
Total Cie Franc Des Petroles SA Class B 29,223 2,381,175
Usinor Sacilor SA 62,639 913,158
------------
17,572,008
------------
Germany (3.2%)
Adidas AG 7,300 631,891
AVA Allgemeine Handelsgesellschaft der Verbraucher AG `D' 2,100 605,467
BASF AG 107,460 4,145,935
Bayerische Motoren Werke AG 2,900 2,025,187
GEA AG 1,900 582,427
SGL Carbon AG 12,317 1,555,157
------------
9,546,064
------------
Hong Kong (4.5%)
Citic Pacific Ltd. 145,700 845,866
Hong Kong Land Holdings Ltd. 2,165,812 6,020,957
Hong Kong Land Holdings Ltd. ADR 186,600 2,593,740
HSBC Holdings PLC 11,562 247,415
Jardine Matheson Holdings Ltd. 575,031 3,795,205
Swire Pacific Ltd. Class A 7,700 73,426
------------
13,576,609
------------
</TABLE>
See Accompanying Notes to Financial Statements.
9
<PAGE>
<PAGE>
WARBURG PINCUS TRUST -- INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF NET ASSETS (CONT'D)
December 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
----------- ------------
<S> <C> <C>
COMMON STOCK (CONT'D)
India (1.7%)
Bharat Petroleum Corp., Ltd. 11,000 $ 91,950
Hindalco Industries Ltd. 30,000 552,454
Hindalco Industries Ltd. GDR 450 11,025
Indo Rama Synthetics GDR 67,400 396,986
Reliance Industries Ltd. GDS 202,185 2,426,220
State Bank of India Ltd. 236,600 1,503,223
Tata Engineering & Locomotive Co. Ltd. 11,000 103,983
------------
5,085,841
------------
Indonesia (1.5%)
P.T. Bank International Indonesia 327,208 322,219
P.T. Indosat 78,000 214,740
P.T. Indosat ADR 79,700 2,181,788
P.T. Mulia Industrindo 148,330 153,921
P.T. Semen Cibinong 356,000 1,002,711
P.T. Semen Gresik 65,000 209,233
P.T. Sinar Mas Multiartha 119,600 100,047
P.T. Telekomunikasi Indonesia ADR 7,200 248,400
------------
4,433,059
------------
Israel (1.4%)
Blue Square-Israel Ltd. ADR `D' 165,400 2,356,950
ECI Telecommunications Limited Designs 89,550 1,902,938
------------
4,259,888
------------
Japan (23.9%)
Advantest Corp. 30,000 1,407,222
Aiwa Co., Ltd. 60,500 1,040,040
Anritsu Corp. 100,000 1,079,820
Canon, Inc. 150,000 3,317,208
Daibiru Corp. 145,000 1,340,273
Daimaru, Inc. 111,000 593,547
Daiwa Securities Co., Ltd. 4,000 35,591
DDI Corp. 465 3,076,969
East Japan Railway Co. 283 1,273,696
Fujitsu Ltd. 23,000 214,582
Hankyu Realty Co., Ltd. 230,000 1,688,839
Hirata Technical Co., Ltd. 92,000 1,096,752
Hitachi Ltd. 84,000 783,690
Honda Motor Co. 91,000 2,602,021
I.O. Data Device, Inc. 27,000 734,710
Isuzu Motors Ltd. 452,000 2,010,884
</TABLE>
See Accompanying Notes to Financial Statements.
10
<PAGE>
<PAGE>
WARBURG PINCUS TRUST -- INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF NET ASSETS (CONT'D)
December 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
----------- ------------
<S> <C> <C>
COMMON STOCK (CONT'D)
Japan (cont'd)
Japan Asia Investment Co., Ltd. `D' 225,000 $ 1,496,631
Jusco Co., Ltd. 101,000 3,428,905
Kawasaki Heavy Industries 545,000 2,255,140
Keyence Corp. 10,500 1,297,080
Mitsubishi Estate Co., Ltd. 171,000 1,757,861
Mitsubishi Heavy Industries Ltd. 353,000 2,805,459
Mycal Corp. 255,000 3,700,760
NEC Corp. 55,000 665,169
Nikko Securities Co., Ltd. 129,000 962,820
Nippon Communication Systems Corp. 100,000 1,140,290
Nitta Industrial Corp. 123,000 1,540,688
NKK Corp. `D' 1,175,000 2,649,231
Noritsu Koki Co., Ltd. 17,000 800,363
NTT Data Communications Systems Co. 31 907,826
Orix Corp. 41,700 1,736,299
Pioneer Electronic Corp. 130,000 2,481,859
Rohm Co., Ltd. 23,000 1,510,021
Sharp Corp. 162,000 2,309,088
Shinmei Electric Co. 91,000 1,438,580
Sony Corp. 38,000 2,491,534
TDK Corp. 50,000 3,261,057
Toray Industries, Inc. 292,000 1,803,559
Uny Co., Ltd. 74,000 1,355,218
West Japan Railway Co. 500 1,619,730
Yamatake-Honeywell Co. 125,000 2,019,264
Yokogawa Electric 171,000 1,477,194
York-Benimaru Co., Ltd. 6,300 175,786
------------
71,383,256
------------
Malaysia (0.5%)
Land & General BHD 622,500 1,491,653
Westmont Industries BHD 900 1,483
------------
1,493,136
------------
Mexico (0.6%)
Gruma SA de CV Class B `D' 283,500 1,728,659
------------
Netherlands (0.5%)
Philips Electronics N.V. 38,700 1,569,525
------------
</TABLE>
See Accompanying Notes to Financial Statements.
11
<PAGE>
<PAGE>
WARBURG PINCUS TRUST -- INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF NET ASSETS (CONT'D)
December 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
----------- ------------
<S> <C> <C>
COMMON STOCK (CONT'D)
New Zealand (5.0%)
Brierley Investments Ltd. 3,664,100 $ 3,391,659
Fletcher Challenge Building 1,194,750 3,672,315
Fletcher Challenge Forestry 3,519,600 5,894,070
Lion Nathan Ltd. 804,600 1,927,318
------------
14,885,362
------------
Norway (1.4%)
Den Norske Bank AS Series A 1,122,500 4,268,988
------------
Philippines (0.3%)
Millicom International Cellular SA GDR `D' 25,450 817,581
------------
Portugal (2.3%)
Portugal Telecom SA 9,200 262,348
Portugal Telecom SA ADR 142,200 4,017,150
Telecel-Comunicacaoes Pessoais SA `D' 40,000 2,554,839
------------
6,834,337
------------
Singapore (2.1%)
DBS Land Ltd. 805,000 2,965,062
Development Bank of Singapore Ltd. 244,000 3,298,241
------------
6,263,303
------------
South Korea (3.1%)
Daewoo Electronics Co., Ltd. 255,720 1,836,328
Hanil Bank 25,000 172,107
Inchon Iron & Steel Co., Ltd. 70,860 1,143,853
Inchon Iron & Steel Co., Ltd. (New) `D' 22,128 351,947
Kookmin Bank GDR 43,000 803,025
Korea Electric Power Corp. 83,700 2,443,941
Korea Long Term Credit Bank 6,500 115,226
Samsung Electronics Co., Ltd. 19,160 1,127,882
Samsung Electronics Co., Ltd. (New) `D' 620 34,813
Samsung Electronics Co., Ltd. GDR (Non-Voting) `D' 8,000 147,600
Samsung Electronics Co., Ltd. GDR (Voting) 5,941 245,809
Ssangyong Investment & Securities Co., Ltd. `D' 82,500 791,217
------------
9,213,748
------------
</TABLE>
See Accompanying Notes to Financial Statements.
12
<PAGE>
<PAGE>
WARBURG PINCUS TRUST -- INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF NET ASSETS (CONT'D)
December 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
----------- ------------
<S> <C> <C>
COMMON STOCK (CONT'D)
Spain (4.4%)
Banco de Santander 2,000 $ 128,082
Banco de Santander ADR 53,800 3,416,300
Iberdrola SA 444,700 6,305,857
Repsol SA ADR 85,200 3,248,250
------------
13,098,489
------------
Sweden (3.4%)
ABB AB Series B 29,332 3,327,158
Astra AB Series B 50,135 2,423,546
Biacore International AB ADR `D' 193,700 4,261,400
------------
10,012,104
------------
Switzerland (1.5%)
Novartis AG `D' 917 1,050,313
Novartis AG (Bearer) `D' 2,903 3,325,038
------------
4,375,351
------------
Taiwan (3.0%)
China Steel Corp. 979,900 919,993
GP-Taiwan Index Fund IDR `D' 60 621,000
Hocheng Group Corp. 583,050 997,211
Phoenixtec Power Co., Ltd. `D' 2,054,860 3,813,605
Tatung Co., Ltd. 723,000 1,394,432
Ton Yi Industrial Corp. `D' 942,010 1,172,370
------------
8,918,611
------------
Thailand (0.7%)
Bangkok Bank Public Co., Ltd. 68,300 660,624
Industrial Finance Corp. of Thailand 36,000 97,582
Siam Cement Public Co., Ltd. 27,500 866,615
Thai Military Bank Public Co., Ltd. 273,700 539,074
------------
2,163,895
------------
</TABLE>
See Accompanying Notes to Financial Statements.
13
<PAGE>
<PAGE>
WARBURG PINCUS TRUST -- INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF NET ASSETS (CONT'D)
December 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
----------- ------------
<S> <C> <C>
COMMON STOCK (CONT'D)
United Kingdom (7.5%)
British Airport Authority PLC 363,736 $ 3,029,867
Cookson Group PLC 1,025,328 4,143,137
Grand Metropolitan PLC 166,202 1,306,181
Rolls-Royce PLC 1,202,840 5,303,219
TC Group PLC 306,980 704,319
Thistle Hotels PLC `D' 1,032,548 3,208,791
Thistle Hotels PLC ADR `D' 12,000 372,720
Vodafone Group PLC 996,300 4,204,957
------------
22,273,191
------------
TOTAL COMMON STOCK (Cost $273,098,684) 285,179,448
------------
PREFERRED STOCK (0.2%)
Germany (0.1%)
GEA AG 945 297,984
------------
South Korea (0.1%)
Samsung Electronics Co., Ltd. 4,000 108,677
Samsung Electronics Co., Ltd. (New) `D' 1,205 31,959
------------
140,636
------------
TOTAL PREFERRED STOCK (Cost $746,280) 438,620
------------
RIGHTS (0.0%)
Indonesia
P.T. Sinar Mas Multiartha, 01/08/97 `D'
(Cost $40,799) 119,600 43,058
------------
CALL OPTIONS (0.0%)
Japan (0.0%)
Topix Index, 03/14/97 (Strike Price 1,539.20) (Cost
$450,000)`D' 212,545 34,198
------------
<CAPTION>
PAR
-----------
<S> <C> <C>
CONVERTIBLE BONDS (0.5%)
Thailand (0.5%)
Bangkok Bank Public Co., Ltd., 3.25%, 03/03/04
(Cost $1,767,336) $ 1,480,000 1,450,400
------------
</TABLE>
See Accompanying Notes to Financial Statements.
14
<PAGE>
<PAGE>
WARBURG PINCUS TRUST -- INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF NET ASSETS (CONT'D)
December 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR VALUE
----------- ------------
<S> <C> <C>
SHORT-TERM INVESTMENTS (2.5%)
Repurchase agreement with Goldman Sachs & Co. dated
12/31/96 at 6.05% to be repurchased at $7,408,489 on
01/02/97. (Collateralized by $7,565,000 U.S. Treasury Note
5.125%, due 04/30/98. Market value of collateral is
$7,557,435.) (Cost $7,406,000) $ 7,406,000 $ 7,406,000
------------
TOTAL INVESTMENTS AT VALUE (98.8%) (Cost $283,509,099*) 294,551,724
ASSETS IN EXCESS OF OTHER LIABILITIES (1.2%) 3,666,559
------------
NET ASSETS (100.0%) (applicable to 25,979,565 shares outstanding) $298,218,283
------------
------------
NET ASSET VALUE, offering and redemption price per share
($298,218,283 [div] 25,979,565) $11.48
------------
------------
</TABLE>
INVESTMENT ABBREVIATIONS
ADR = American Depository Receipt
GDR = Global Depository Receipt
GDS = Global Depository Share
- --------------------------------------------------------------------------------
`D' Non-income producing security.
* Cost for Federal income tax purposes is $283,518,201.
See Accompanying Notes to Financial Statements.
15
<PAGE>
<PAGE>
WARBURG PINCUS TRUST -- SMALL COMPANY GROWTH PORTFOLIO
STATEMENT OF NET ASSETS
December 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
----------- ------------
<S> <C> <C>
COMMON STOCK (96.5%)
Banks and Savings & Loans (2.6%)
Banco Latinoamericano de Exportaciones SA Class E 61,400 $ 3,116,050
Great Financial Corp. 65,300 1,901,863
HUBCO, Inc. 152,543 3,737,304
------------
8,755,217
------------
Business Services (15.7%)
Abacus Direct Corp. `D' 13,800 258,750
American Management Systems, Inc. `D' 144,400 3,537,800
Bowne & Co., Inc. 120,000 2,955,000
Catalina Marketing Corp. `D' 55,500 3,059,437
CCC Information Services Group `D' 164,200 2,627,200
CDI Corp. `D' 108,800 3,087,200
Claremont Technology Group, Inc. `D' 98,600 2,588,250
Daisytek International Corp. `D' 80,000 3,280,000
DecisionOne Holdings Corp. `D' 61,900 1,021,350
Getty Communications PLC ADR `D' 240,400 3,606,000
ICTS International N.V. `D' 289,400 2,930,175
National Educational Corp. `D' 206,000 3,141,500
Norrell Corp. 137,600 3,749,600
On Assignment, Inc. `D' 84,300 2,486,850
Pharmaceutical Product Development, Inc. `D' 160,500 4,052,625
Pittston Brink's Group 121,000 3,267,000
QuickResponse Services, Inc. `D' 95,600 2,724,600
Wilmar Industries, Inc. `D' 131,100 3,638,025
XLConnect Solutions, Inc. `D' 37,500 1,078,125
------------
53,089,487
------------
Capital Equipment (1.3%)
Roper Industries, Inc. 45,900 1,795,838
Valmont Industries, Inc. 64,200 2,648,250
------------
4,444,088
------------
Communications & Media (2.8%)
Central European Media Enterprises Ltd. Class A `D' 184,200 5,848,350
Harte-Hanks Communications, Inc. 126,050 3,497,888
------------
9,346,238
------------
</TABLE>
See Accompanying Notes to Financial Statements.
16
<PAGE>
<PAGE>
WARBURG PINCUS TRUST -- SMALL COMPANY GROWTH PORTFOLIO
STATEMENT OF NET ASSETS (CONT'D)
December 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
----------- ------------
<S> <C> <C>
COMMON STOCK (CONT'D)
Computers (12.4%)
Auspex Systems, Inc. `D' 179,800 $ 2,090,175
Citrix Systems, Inc. `D' 134,100 5,238,281
Cognex Corp. `D' 174,000 3,219,000
Cooper & Chyan Technology, Inc. `D' 116,500 3,815,375
DataWorks Corp. `D' 42,500 1,073,125
Harbinger Corp. `D' 109,200 2,866,500
Integrated Systems, Inc. `D' 165,500 4,303,000
Learning Tree International, Inc. `D' 112,200 3,309,900
National Instruments Corp. `D' 121,500 3,888,000
Pure Atria Corp. `D' 107,900 2,670,525
Rational Software Corp. `D' 111,500 4,411,219
Renaissance Solutions, Inc. `D' 19,000 850,250
Tecnomatix Technologies Ltd. `D' 159,100 4,216,150
------------
41,951,500
------------
Consumer Durables (0.7%)
Chicago Miniature Lamp, Inc. `D' 50,300 2,087,450
Dura Automotive Systems, Inc. `D' 16,500 371,250
------------
2,458,700
------------
Consumer Non-Durables (2.7%)
Carson, Inc. Class A `D' 39,700 550,837
Central Garden & Pet Co. `D' 207,100 4,362,043
Marker International `D' 138,100 742,287
Sola International, Inc. `D' 92,100 3,499,800
------------
9,154,967
------------
Consumer Services (2.1%)
DeVRY, Inc. `D' 118,000 2,773,000
ITT Educational Services, Inc. `D' 164,200 3,797,125
Skymall, Inc. `D' 74,000 656,750
------------
7,226,875
------------
Electronics (9.7%)
Burr-Brown Corp. `D' 149,100 3,876,600
Epic Design Technology, Inc. `D' 136,100 3,402,500
Etec Systems, Inc. `D' 87,100 3,331,575
Glenayre Technologies, Inc. `D' 142,550 3,073,734
Kulicke & Soffa Industries, Inc. `D' 40,000 760,000
Methode Electronics, Inc. Class A 173,700 3,517,425
Structural Dynamics Research Corp. `D' 75,000 1,500,000
Synopsys, Inc. `D' 143,900 6,655,375
Tencor Instruments `D' 115,000 3,033,125
Uniphase Corp. `D' 72,500 3,806,250
------------
32,956,584
------------
</TABLE>
See Accompanying Notes to Financial Statements.
17
<PAGE>
<PAGE>
WARBURG PINCUS TRUST -- SMALL COMPANY GROWTH PORTFOLIO
STATEMENT OF NET ASSETS (CONT'D)
December 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
----------- ------------
<S> <C> <C>
COMMON STOCK (CONT'D)
Energy (6.1%)
Brown (Tom), Inc. `D' 171,400 $ 3,577,975
Chieftain International, Inc. `D' 138,200 3,593,200
KCS Energy, Inc. 75,500 2,699,125
Nuevo Energy Co. `D' 67,700 3,520,400
Southern Mineral Corp. `D' # 176,625 1,037,672
Stone Energy Corp. `D' 106,000 3,166,750
Texas Meridian Resources Corp. `D' 186,200 3,188,675
------------
20,783,797
------------
Environmental Services (1.0%)
Allied Waste Industries, Inc. `D' 364,300 3,369,775
------------
Financial Services (3.0%)
Aames Financial Corp. 73,000 2,618,875
PMT Services, Inc. `D' 159,000 2,782,500
Transaction Systems Architects, Inc. Class A `D' 145,600 4,841,200
------------
10,242,575
------------
Food, Beverages & Tobacco (0.3%)
Suprema Specialties, Inc. `D' 257,700 1,159,650
------------
Healthcare (5.1%)
Ballard Medical Products 124,800 2,324,400
Core, Inc. `D' 284,500 2,489,375
EmCare Holdings, Inc. `D' 109,300 2,541,225
Endosonics Corp. `D' 190,800 2,909,700
Endovascular Technologies, Inc. `D' 259,400 2,529,150
Healthsource, Inc. `D' 40,000 525,000
IDX Systems Corp. `D' 76,300 2,184,088
Nitinol Medical Technologies, Inc. `D' 132,800 1,660,000
------------
17,162,938
------------
Industrial Mfg. & Processing (0.5%)
Elbit Vision Systems, Inc. `D' 226,900 1,843,563
------------
Leisure & Entertainment (3.1%)
Family Golf Centers, Inc. `D' 125,600 3,783,700
LodgeNet Entertainment Corp. `D' 116,100 2,060,775
Premier Parks, Inc. `D' 141,000 4,529,625
------------
10,374,100
------------
Lodging & Restaurants (2.2%)
Doubletree Corp. `D' 113,700 5,116,500
Planet Hollywood International, Inc. Class A `D' 127,100 2,510,225
------------
7,626,725
------------
</TABLE>
See Accompanying Notes to Financial Statements.
18
<PAGE>
<PAGE>
WARBURG PINCUS TRUST -- SMALL COMPANY GROWTH PORTFOLIO
STATEMENT OF NET ASSETS (CONT'D)
December 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
----------- ------------
<S> <C> <C>
COMMON STOCK (CONT'D)
Oil Services (4.8%)
Forcenergy Gas Exploration, Inc. `D' 181,300 $ 6,572,125
Global Industries Ltd. `D' 202,500 3,771,563
Petroleum Geo Services ADR `D' 152,500 5,947,500
------------
16,291,188
------------
Pharmaceuticals (6.1%)
Agouron Pharmaceuticals, Inc. `D' 10,000 677,500
Alkermes, Inc. `D' 184,900 4,298,925
Gilead Sciences, Inc. `D' 146,900 3,672,500
La Jolla Pharmaceutical Co. `D' 423,400 2,540,400
Ligand Pharmaceuticals, Inc. Class B `D' 226,000 3,361,750
Regeneron Pharmaceuticals, Inc. `D' 169,000 2,725,125
Serologicals Corp. `D' 99,200 3,509,200
------------
20,785,400
------------
Real Estate (2.5%)
Fairfield Communities, Inc. `D' 96,000 2,376,000
NHP, Inc. `D' 208,100 3,225,550
U.S. Restaurant Properties Master Limited Partnership 102,200 2,836,050
------------
8,437,600
------------
Retail (3.4%)
Borders Group, Inc. `D' 131,700 4,724,737
Payless ShoeSource, Inc. `D' 108,600 4,072,500
Stage Stores, Inc. `D' 6,700 122,275
Urban Outfitters, Inc. `D' 204,000 2,652,000
------------
11,571,512
------------
Telecommunications & Equipment (3.4%)
Brooks Fiber Properties, Inc. `D' 114,800 2,927,400
Intermedia Communications of Florida, Inc. `D' 116,800 3,007,600
Teledata Communications Ltd. `D' 209,100 4,809,300
ViaSat, Inc. `D' 75,000 675,000
------------
11,419,300
------------
Transportation (5.0%)
Coach USA, Inc. `D' 118,000 3,422,000
Heartland Express, Inc. `D' 169,350 4,127,906
Hub Group, Inc. Class A `D' 129,500 3,464,125
Mark VII, Inc. `D' 129,900 3,596,606
Swift Transportation Co., Inc. `D' 107,000 2,514,500
------------
17,125,137
------------
TOTAL COMMON STOCK (Cost $281,381,813) 327,576,916
------------
</TABLE>
See Accompanying Notes to Financial Statements.
19
<PAGE>
<PAGE>
WARBURG PINCUS TRUST -- SMALL COMPANY GROWTH PORTFOLIO
STATEMENT OF NET ASSETS (CONT'D)
December 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR VALUE
----------- ------------
<S> <C> <C>
SHORT-TERM INVESTMENTS (1.8%)
Repurchase agreement with Goldman Sachs & Co. dated 12/31/96
at 6.05% to be repurchased at $6,186,079 on 01/02/97.
(Collateralized by $6,320,000 U.S. Treasury Note 5.125%, due
04/30/98. Market value of collateral is $6,313,680.) (Cost
$6,184,000) $6,184,000 $ 6,184,000
------------
TOTAL INVESTMENTS AT VALUE (98.3%) (Cost $287,565,813*) 333,760,916
ASSETS IN EXCESS OF OTHER LIABILITIES (1.7%) 5,636,641
------------
NET ASSETS (100.0%) (applicable to 23,821,983 shares outstanding) $339,397,557
------------
------------
NET ASSET VALUE, offering and redemption price per share
($339,397,557 [div] 23,821,983) $14.25
------------
------------
</TABLE>
INVESTMENT ABBREVIATION
ADR = American Depository Receipt
- --------------------------------------------------------------------------------
`D' Non-income producing security.
# Restricted security.
* Cost for Federal income tax purposes is $287,861,637.
See Accompanying Notes to Financial Statements.
20
<PAGE>
<PAGE>
WARBURG PINCUS TRUST -- POST-VENTURE CAPITAL PORTFOLIO
STATEMENT OF NET ASSETS
December 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
--------- -----------
<S> <C> <C>
COMMON STOCK (92.7%)
Business Services (11.4%)
BISYS Group, Inc. `D' 5,000 $ 185,312
COHR, Inc. `D' 8,700 234,900
Daisytek International Corp. `D' 3,700 151,700
On Assignment, Inc. `D' 3,900 115,050
Outdoor Systems, Inc. `D' 2,350 66,094
Pharmaceutical Product Development, Inc. `D' 7,400 186,850
QuickResponse Services, Inc. `D' 5,500 156,750
SunGard Data Systems, Inc. `D' 3,900 154,050
Superior Consultant Holdings, Inc. `D' 100 2,475
Wilmar Industries, Inc. `D' 5,600 155,400
-----------
1,408,581
-----------
Computers (17.3%)
Aurum Software, Inc. `D' + 100 2,312
Baan Co. N.V. `D' 6,700 232,825
BMC Software, Inc. `D' 5,900 244,112
Citrix Systems, Inc. `D' 400 15,625
Clarify, Inc. `D' 5,900 283,200
McAfee Associates, Inc. `D' 5,000 220,000
Memco Software Ltd. `D' + 100 1,762
Netscape Communications Corp. `D' 4,300 244,563
Parametric Technology Corp. `D' 4,300 220,913
PeopleSoft, Inc. `D' 3,400 162,988
Pure Atria Corp. `D' 4,800 118,800
Rational Software Corp. `D'++ 3,500 138,469
Rogue Wave Software `D' 100 1,575
SQA, Inc. `D' 500 16,625
Tecnomatix Technologies Ltd. `D' 9,300 246,450
-----------
2,150,219
-----------
Consumer Non-Durables (1.1%)
Sola International, Inc. `D' 3,600 136,800
-----------
Consumer Services (1.1%)
DeVRY, Inc. `D' 5,900 138,650
-----------
</TABLE>
See Accompanying Notes to Financial Statements.
21
<PAGE>
<PAGE>
WARBURG PINCUS TRUST -- POST-VENTURE CAPITAL PORTFOLIO
STATEMENT OF NET ASSETS (CONT'D)
December 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
--------- -----------
<S> <C> <C>
COMMON STOCK (CONT'D)
Electronics (15.9%)
Altera Corp. `D' 3,300 $ 239,869
Avant! Corp. `D' 700 22,224
Epic Design Technology, Inc. `D' 6,900 172,500
Glenayre Technologies, Inc. `D' 7,300 157,406
Intel Corp. 900 117,843
KLA Instruments Corp. `D' 3,200 113,600
Linear Technology Corp. 4,000 175,500
Maxim Integrated Products, Inc. `D' 5,300 229,225
Microchip Technology, Inc. `D' 4,900 249,288
Novellus Systems, Inc. `D' 2,300 124,631
Select Software Tools Ltd. ADR `D' + 100 1,825
Synopsys, Inc. `D' 4,500 208,125
Xilinx, Inc. `D' 4,400 161,975
-----------
1,974,011
-----------
Energy (2.8%)
Nuevo Energy Co. `D' 2,400 124,800
Stone Enery Corp. `D' 500 14,938
Texas Meridian Resources Corp. `D' 5,400 92,475
Titan Exploration, Inc. `D' 9,600 115,200
-----------
347,413
-----------
Environmental Services (1.5%)
USA Waste Services, Inc. `D' 5,900 188,063
-----------
Financial Services (3.8%)
Invesco PLC ADR `D' 3,100 137,563
PartnerRe Ltd. 200 6,800
PMT Services, Inc. `D' 9,400 164,500
Transaction Systems Architects, Inc. Class A `D' 4,800 159,600
-----------
468,463
-----------
Healthcare (8.5%)
American Oncology Resources, Inc. `D' 9,500 97,375
EmCare Holdings, Inc. 3,900 90,675
Oxford Health Plans, Inc. `D' 4,000 234,250
PacifiCare Health Systems, Inc. Class B `D' 2,400 204,600
Physician Reliance Network, Inc. `D' 10,800 83,700
United Healthcare Corp. 4,900 220,500
VISX, Inc. `D' 5,400 119,475
-----------
1,050,575
-----------
Leisure & Entertainment (1.7%)
Premier Parks, Inc. `D' 6,400 205,600
-----------
Lodging & Restaurants (1.7%)
Doubletree Corp. `D' 4,700 211,500
-----------
</TABLE>
See Accompanying Notes to Financial Statements.
22
<PAGE>
<PAGE>
WARBURG PINCUS TRUST -- POST-VENTURE CAPITAL PORTFOLIO
STATEMENT OF NET ASSETS (CONT'D)
December 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
--------- -----------
<S> <C> <C>
COMMON STOCK (CONT'D)
Office Equipment & Supplies (0.8%)
Physician Computer Network, Inc. `D' 12,300 $ 104,550
-----------
Oil Services (1.7%)
Forcenergy Gas Exploration, Inc. `D' 3,500 126,875
Offshore Energy Development Corp. `D' 5,400 82,350
-----------
209,225
-----------
Pharmaceuticals (5.9%)
Agouron Pharmaceuticals, Inc. `D' 3,300 223,575
BioChem Pharma, Inc. `D' 3,800 190,950
Gilead Sciences, Inc. `D' 2,200 55,000
SangStat Medical Corp. `D' 7,400 196,100
Serologicals Corp. `D' 1,800 63,675
-----------
729,300
-----------
Retail (4.7%)
Borders Group, Inc. `D' 4,900 175,787
PETsMART, Inc. `D' 4,100 89,688
Revco, D.S., Inc. `D' 5,400 199,800
Rite Aid Corp. 2,950 117,263
Stage Stores, Inc. `D' 100 1,825
-----------
584,363
-----------
Telecommunications & Equipment (11.3%)
Advanced Fibre Communication, Inc. `D' 500 27,812
Ascend Communications, Inc. `D' 3,600 223,650
Cascade Communications Corp. `D' 3,800 209,475
DSP Communications, Inc. `D' 11,600 224,750
GeoTel Communications Corp. `D' 200 2,600
McLeod, Inc. `D' 6,800 173,400
MFS Communications Co., Inc. `D' 2,500 136,250
Tellabs, Inc. `D' 4,000 150,500
3Com Corp. `D' 3,400 249,475
-----------
1,397,912
-----------
Transportation (1.5%)
Coach USA, Inc. `D' 6,600 191,400
-----------
TOTAL COMMON STOCK (Cost $11,318,933) 11,496,625
-----------
</TABLE>
See Accompanying Notes to Financial Statements.
23
<PAGE>
<PAGE>
WARBURG PINCUS TRUST -- POST-VENTURE CAPITAL PORTFOLIO
STATEMENT OF NET ASSETS (CONT'D)
December 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR VALUE
--------- -----------
<S> <C> <C>
SHORT-TERM INVESTMENTS (14.0%)
Repurchase agreement with Goldman Sachs & Co. dated 12/31/96
at 6.05% to be repurchased at $1,731,582 on 01/02/97.
(Collateralized by $1,735,000 U.S. Treasury Note 5.625%, due
01/31/98. Market value of collateral is $1,770,568.) (Cost
$1,731,000) 1$,731,000 $ 1,731,000
-----------
TOTAL INVESTMENTS AT VALUE (106.7%) (Cost $13,049,933*) 13,227,625
LIABILITIES IN EXCESS OF OTHER ASSETS (6.7%) (828,093)
-----------
NET ASSETS (100.0%) (applicable to 1,270,771 shares
outstanding) $12,399,532
-----------
-----------
NET ASSET VALUE, offering and redemption price per share
($12,399,532[div]1,270,771) $9.76
-----------
-----------
</TABLE>
INVESTMENT ABBREVIATION
ADR = American Depository Receipt
- --------------------------------------------------------------------------------
`D' Non-income producing security.
* Cost for Federal income tax purposes is $13,050,141.
+ This position has been segregated with the Portfolio's custodian to cover
open short sale commitments.
++ A portion of this position has been segregated with the Portfolio's
custodian to cover open short sale commitments.
See Accompanying Notes to Financial Statements.
24
<PAGE>
<PAGE>
WARBURG PINCUS TRUST
STATEMENTS OF OPERATIONS
For the Year or Period Ended December 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERNATIONAL SMALL COMPANY
EQUITY GROWTH POST-VENTURE
PORTFOLIO PORTFOLIO CAPITAL PORTFOLIO(1)
------------ ------------- --------------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividends $ 4,385,301 $ 245,724 $ 15
Interest 574,501 921,752 10,972
Foreign taxes withheld (527,256) 0 0
------------ ------------- -------
Total investment income 4,432,546 1,167,476 10,987
------------ ------------- -------
EXPENSES:
Investment advisory 2,217,681 2,100,487 6,696
Administrative services 485,357 466,776 1,072
Audit 33,925 18,200 10,000
Custodian/Sub-custodian 271,919 71,035 6,329
Trustees 3,875 3,875 0
Insurance 3,847 2,270 0
Interest 8,404 4,415 0
Legal 61,331 43,858 0
Offering/Organizational costs 12,440 12,423 1,838
Printing 7,526 2,330 2,000
Transfer agent 1,304 8,332 1,051
Miscellaneous 1,752 1,250 0
------------ ------------- -------
3,109,361 2,735,251 28,986
Less fees waived and expenses reimbursed (86,535) (20,848) (22,290)
------------ ------------- -------
Total expenses 3,022,826 2,714,403 6,696
------------ ------------- -------
Net investment income (loss) 1,409,720 (1,546,927) 4,291
------------ ------------- -------
NET REALIZED AND UNREALIZED GAIN (LOSS) FROM
INVESTMENTS AND FOREIGN CURRENCY RELATED
ITEMS:
Net realized gain (loss) from security
transactions 1,520,782 (17,819,175) (48,100)
Net realized gain from foreign currency related
items 1,491,912 0 0
Net change in unrealized appreciation from
investments and
foreign currency related items 10,686,258 34,312,085 178,562
------------ ------------- -------
Net realized and unrealized gain from
investments and
foreign currency related items 13,698,952 16,492,910 130,462
------------ ------------- -------
Net increase in net assets resulting from
operations $15,108,672 $14,945,983 $134,753
------------ ------------- --------
------------ ------------- --------
</TABLE>
- --------------------------------------------------------------------------------
(1) For the period September 30, 1996 (Commencement of Operations) through
December 31, 1996
See Accompanying Notes to Financial Statements.
25
<PAGE>
<PAGE>
WARBURG PINCUS TRUST
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY SMALL COMPANY GROWTH
PORTFOLIO PORTFOLIO
--------------------------- --------------------------- POST-VENTURE
FOR THE FOR THE CAPITAL PORTFOLIO
PERIOD PERIOD ------------------
JUNE 30, 1995 JUNE 30, 1995 FOR THE PERIOD
(COMMENCEMENT (COMMENCEMENT SEPTEMBER 30, 1996
OF OF (COMMENCEMENT
FOR THE OPERATIONS) FOR THE OPERATIONS) OF OPERATIONS)
YEAR ENDED THROUGH YEAR ENDED THROUGH THROUGH
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1996 1995 1996 1995 1996
------------ ------------- ------------ ------------- ------------------
<S> <C> <C> <C> <C> <C>
FROM OPERATIONS:
Net investment income (loss) $ 1,409,720 $ 58,109 $ (1,546,927) $ (86,882) $ 4,291
Net realized gain (loss) from
security transactions 1,520,782 (66,288) (17,819,175) (791,236) (48,100)
Net realized gain from foreign
currency related items 1,491,912 179,901 0 0 0
Net change in unrealized
appreciation from investments and
foreign currency related items 10,686,258 1,335,993 34,312,085 11,883,018 178,562
------------ ------------- ------------ ------------- ----------
Net increase in net assets
resulting
from operations 15,108,672 1,507,715 14,945,983 11,004,900 134,753
------------ ------------- ------------ ------------- ----------
FROM DISTRIBUTIONS:
Dividends from net investment income (1,624,713) (58,109) 0 0 0
Distributions in excess of net
investment income (2,505,916) (327,277) 0 0 0
Distributions from realized gains (1,520,782) 0 0 0 0
Distributions in excess of realized
gains (317,087) 0 0 0 0
------------ ------------- ------------ ------------- ----------
Net decrease in net assets from
distributions (5,968,498) (385,386) 0 0 0
------------ ------------- ------------ ------------- ----------
FROM CAPITAL SHARE TRANSACTIONS:
Proceeds from sale of shares 333,352,387 63,501,464 434,899,200 101,359,554 12,267,019
Reinvested dividends 5,968,497 385,386 0 0 0
Net asset value of shares redeemed (114,779,643) (522,311) (207,892,540) (14,969,540) (2,240)
------------ ------------- ------------ ------------- ----------
Net increase in net assets from
capital share transactions 224,541,241 63,364,539 227,006,660 86,390,014 12,264,779
------------ ------------- ------------ ------------- ----------
Net increase in net assets 233,681,415 64,486,868 241,952,643 97,394,914 12,399,532
NET ASSETS:
Beginning of period 64,536,868 50,000 97,444,914 50,000 0
------------ ------------- ------------ ------------- ----------
End of period $298,218,283 $64,536,868 $339,397,557 $97,444,914 $12,399,532
------------ ------------- ------------ ------------- -----------
------------ ------------- ------------ ------------- -----------
</TABLE>
See Accompanying Notes to Financial Statements.
26
<PAGE>
<PAGE>
WARBURG PINCUS TRUST -- INTERNATIONAL EQUITY PORTFOLIO
FINANCIAL HIGHLIGHTS
(For a Share of the Portfolio Outstanding Throughout Each Period)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE PERIOD
JUNE 30, 1995
FOR THE (COMMENCEMENT OF
YEAR ENDED OPERATIONS) THROUGH
DECEMBER 31, 1996 DECEMBER 31, 1995
----------------- -------------------
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.65 $ 10.00
------- -------
Income from Investment Operations:
Net Investment Income .00 .03
Net Gain on Securities and Foreign Currency Related
Items (both realized and unrealized) 1.06 .70
----- -----
Total from Investment Operations 1.06 .73
----- -----
Less Distributions:
Dividends from Net Investment Income (.06) (.01)
Distributions in Excess of Net Investment Income (.10) (.07)
Distributions from Realized Gains (.06) .00
Distributions in Excess of Realized Gains (.01) .00
----- -----
Total Distributions (.23) (.08)
----- -----
NET ASSET VALUE, END OF PERIOD $ 11.48 $ 10.65
------- -------
------- -------
Total Return 9.98% 7.30%`D'
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000s) $298,218 $64,537
Ratios to average daily net assets:
Operating expenses 1.36% 1.44%*
Net investment income .64% .48%*
Decrease reflected in above operating expense
ratios due to
waivers/reimbursements .04% .77%*
Portfolio Turnover Rate 30.82% 8.31%`D'
Average Commission Rate # $.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.
See Accompanying Notes to Financial Statements.
27
<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 PERIOD
JUNE 30, 1995
FOR THE (COMMENCEMENT OF
YEAR ENDED OPERATIONS) THROUGH
DECEMBER 31, 1996 DECEMBER 31, 1995
----------------- -------------------
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 12.51 $ 10.00
------- -------
Income from Investment Operations:
Net Investment Loss (.06) (.01)
Net Gain on Securities (both realized and
unrealized) 1.80 2.52
----- -----
Total from Investment Operations 1.74 2.51
----- -----
NET ASSET VALUE, END OF PERIOD $ 14.25 $ 12.51
------- -------
------- -------
Total Return 13.91% 25.10%`D'
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000s) $339,398 $97,445
Ratios to average daily net assets:
Operating expenses 1.16% 1.25%*
Net investment loss (.66%) (.36%)*
Decrease reflected in above operating expense
ratios due to
waivers/reimbursements .01% .25%*
Portfolio Turnover Rate 101.50% 34.25%`D'
Average Commission Rate # $.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.
See Accompanying Notes to Financial Statements.
28
<PAGE>
<PAGE>
WARBURG PINCUS TRUST -- POST-VENTURE CAPITAL PORTFOLIO
FINANCIAL HIGHLIGHTS
(For a Share of the Portfolio Outstanding Throughout the Period)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE PERIOD
SEPTEMBER 30, 1996
(COMMENCEMENT OF
OPERATIONS) THROUGH
DECEMBER 31, 1996
---------------------
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.00
-------
Income from Investment Operations:
Net Investment Income .00
Net Loss on Securities (both realized and unrealized) (.24)
------
Total from Investment Operations (.24)
------
NET ASSET VALUE, END OF PERIOD $ 9.76
-------
-------
Total Return (2.40%)`D'
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000s) $12,400
Ratios to average daily net assets:
Operating expenses 1.40%*
Net investment income .80%*
Decrease reflected in above operating expense ratio due to
waivers/reimbursements 4.16%
Portfolio Turnover Rate 6.80%`D'
Average Commission Rate # $.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.
See Accompanying Notes to Financial Statements.
29
<PAGE>
<PAGE>
WARBURG PINCUS TRUST
NOTES TO FINANCIAL STATEMENTS
December 31, 1996
- --------------------------------------------------------------------------------
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 three 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
and Post-Venture Capital Portfolio is a diversified investment fund that seeks
long-term growth of capital by investing primarily in equity securities of
issuers 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 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 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. The cost of investments sold is determined by use of the
specific identification method for both financial reporting and income tax
purposes.
30
<PAGE>
<PAGE>
WARBURG PINCUS TRUST
NOTES TO FINANCIAL STATEMENTS (CONT'D)
December 31, 1996
- --------------------------------------------------------------------------------
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 $616,796.
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
December 31, 1996 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
31
<PAGE>
<PAGE>
WARBURG PINCUS TRUST
NOTES TO FINANCIAL STATEMENTS (CONT'D)
December 31, 1996
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES (CONT'D)
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 year or period ended December 31, 1996, the
International Equity Portfolio, the Small Company Growth Portfolio and the
Post-Venture Capital Portfolio received credits or reimbursements of $4,542,
$8,971 and $51, 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, 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 year or period ended December 31, 1996, investment advisory
fees, waivers and reimbursements were as follows:
<TABLE>
<CAPTION>
GROSS NET EXPENSE
PORTFOLIO ADVISORY FEE WAIVER ADVISORY FEE REIMBURSEMENTS
- ------------------- ------------ -------- ------------ ----------------------
<S> <C> <C> <C> <C>
International
Equity $2,217,681 $(79,157) $2,138,524 0
Small Company
Growth 2,100,487 (10,689) 2,089,798 0
Post-Venture
Capital 6,696 (6,696) 0 $(15,007)
</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.
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 year or
period ended December 31, 1996, administrative services fees earned by CFSI were
as follows:
<TABLE>
<CAPTION>
PORTFOLIO CO-ADMINISTRATION FEE
- ------------------------------------------------------ ---------------------
<S> <C>
International Equity $ 221,792
Small Company Growth 233,388
Post-Venture Capital 536
</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
32
<PAGE>
<PAGE>
WARBURG PINCUS TRUST
NOTES TO FINANCIAL STATEMENTS (CONT'D)
December 31, 1996
- --------------------------------------------------------------------------------
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 year or period ended December 31, 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 $ 263,565 $(2,836) $ 260,729
Small Company Growth 233,388 (1,188) 232,200
Post-Venture Capital 536 (536) 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 year or period ended December 31, 1996, purchases and sales of
investment securities (excluding short-term investments) were as follows:
<TABLE>
<CAPTION>
PORTFOLIO PURCHASES SALES
- ------------------------------------------------ ------------ ------------
<S> <C> <C>
International Equity $280,772,991 $ 64,107,912
Small Company Growth 441,523,206 221,312,790
Post-Venture Capital 11,602,116 235,084
</TABLE>
At December 31, 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 $31,799,644 $(20,766,121) $ 11,033,523
Small Company Growth 58,395,893 (12,496,614) 45,899,279
Post-Venture Capital 335,714 (158,230) 177,484
</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 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.
33
<PAGE>
<PAGE>
WARBURG PINCUS TRUST
NOTES TO FINANCIAL STATEMENTS (CONT'D)
December 31, 1996
- --------------------------------------------------------------------------------
4. FORWARD FOREIGN CURRENCY CONTRACTS (CONT'D)
At December 31, 1996, 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 03/05/97 64,830,000 $12,747,758 $12,565,171 $182,587
Japanese Yen 10/24/97 1,716,416,000 16,000,000 15,474,318 525,682
Japanese Yen 10/24/97 856,052,800 7,989,942 7,717,728 272,214
----------- ----------- --------
$36,737,700 $35,757,217 $980,483
----------- ----------- --------
----------- ----------- --------
</TABLE>
5. 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>
POST-VENTURE
INTERNATIONAL EQUITY PORTFOLIO SMALL COMPANY GROWTH PORTFOLIO CAPITAL PORTFOLIO
---------------------------------- ---------------------------------- -------------------
FOR THE YEAR JUNE 30, 1995 FOR THE YEAR JUNE 30, 1995 SEPTEMBER 30, 1996
ENDED (COMMENCEMENT OF ENDED (COMMENCEMENT OF (COMMENCEMENT OF
DECEMBER 31, OPERATIONS) THROUGH DECEMBER 31, OPERATIONS) THROUGH OPERATIONS) THROUGH
1996 DECEMBER 31, 1995 1996 DECEMBER 31, 1995 DECEMBER 31, 1996
------------ ------------------- ------------ ------------------- -------------------
<S> <C> <C> <C> <C> <C>
Shares sold 29,490,915 6,066,626 31,233,075 9,104,528 1,270,999
Shares issued to
shareholders on
reinvestment of
dividends 531,478 37,056 0 0 0
Shares redeemed (10,101,449) (50,061) (15,202,857) (1,317,763) (228)
------------ ------- ------------ ---------- --------
Net increase in shares
outstanding 19,920,944 6,053,621 16,030,218 7,786,765 1,270,771
------------ --------- ------------ --------- ---------
------------ --------- ------------ --------- ---------
</TABLE>
6. NET ASSETS
Net assets at December 31, 1996, consisted of the following:
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY SMALL COMPANY GROWTH POST-VENTURE CAPITAL
PORTFOLIO PORTFOLIO PORTFOLIO
-------------------- -------------------- --------------------
<S> <C> <C> <C>
Capital contributed, net $287,955,780 $311,812,865 $ 12,264,779
Accumulated net investment income (loss) (1,376,373) 0 4,291
Accumulated net realized loss from
security transactions (383,375) (18,610,411) (48,100)
Net unrealized appreciation from
investments and foreign currency
related items 12,022,251 46,195,103 178,562
------------ ------------ ------------
Net assets $298,218,283 $339,397,557 $ 12,399,532
------------ ------------ ------------
------------ ------------ ------------
</TABLE>
7. CAPITAL LOSS CARRYOVER
At December 31, 1996, 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>
34
<PAGE>
<PAGE>
WARBURG PINCUS TRUST
REPORT OF INDEPENDENT ACCOUNTANTS
- --------------------------------------------------------------------------------
To the Shareholders and Board of Trustees
of the Warburg Pincus Trust:
We have audited the accompanying statements of net assets of the International
Equity, Small Company Growth and Post-Venture Capital Portfolios of the Warburg
Pincus Trust (the 'Trust') as of December 31, 1996, and the related statements
of operations for the year (or period) then ended and the related statements of
changes in net assets and financial highlights for each of the periods
presented. These financial statements and financial highlights are the
responsibility of the Trust's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. Our procedures included
confirmation of securities owned as of December 31, 1996, by correspondence with
the custodians and brokers. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of each
portfolio of the Warburg Pincus Trust as of December 31, 1996, and the results
of their operations for the year (or period) then ended and the changes in their
net assets and financial highlights for each of the periods presented, in
conformity with generally accepted accounting principles.
COOPERS & LYBRAND L.L.P.
2400 Eleven Penn Center
Philadelphia, Pennsylvania
February 11, 1997
35
<PAGE>
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
STATEMENT OF DIFFERENCES
------------------------
The dagger symbol shall be expressed as ....................... `D'
The division symbol shall be expressed as .................... [div]
