[GRAPHIC OMITTED] [GRAPHIC OMITTED]
WARBURG PINCUS CREDIT SUISSE ASSET MANAGEMENT
ANNUAL
REPORT
DECEMBER 31, 1999
Warburg Pincus Trust
(BULLET) International Equity Portfolio
(BULLET) Small Company Growth Portfolio
(BULLET) Post-Venture Capital Portfolio
(BULLET) Growth & Income Portfolio
(BULLET) Emerging Markets Portfolio
(BULLET) Emerging Growth Portfolio
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,
when 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 800-222-8977 or by writing to Warburg
Pincus, P.O. Box 9030, Boston, MA 02205-9030.
Provident Distributors, Inc., Distributor, located at Four Falls Corporate
Center, 6th Floor, West Conshohocken, PA 19428-2961 is not affiliated with
Credit Suisse Asset Management, LLC. Telephone: 800-927-2874. The Trust is
advised by Credit Suisse Asset Management, LLC.
<PAGE>
FROM TIME TO TIME, THE PORTFOLIOS' INVESTMENT ADVISER AND CO-ADMINISTRATORS MAY
WAIVE SOME FEES AND/OR REIMBURSE SOME EXPENSES, WITHOUT WHICH PERFORMANCE WOULD
BE LOWER. WAIVERS AND/OR REIMBURSEMENTS ARE SUBJECT TO CHANGE.
RETURNS ARE HISTORICAL AND INCLUDE CHANGE IN SHARE PRICE AND REINVESTMENT OF
DIVIDENDS AND CAPITAL GAINS. PAST PERFORMANCE CANNOT GUARANTEE FUTURE RESULTS.
RETURNS AND SHARE PRICE WILL FLUCTUATE, AND REDEMPTION VALUE MAY BE MORE OR LESS
THAN ORIGINAL COST.
INTERNATIONAL INVESTING ENTAILS SPECIAL RISK CONSIDERATIONS, INCLUDING CURRENCY
FLUCTUATIONS, LOWER LIQUIDITY, ECONOMIC AND POLITICAL RISKS, AND DIFFERENCES IN
ACCOUNTING METHODS.
THE VIEWS OF THE PORTFOLIOS' MANAGEMENT ARE AS OF THE DATE OF THE LETTERS, AND
PORTFOLIO HOLDINGS DESCRIBED IN THIS DOCUMENT ARE AS OF DECEMBER 31, 1999; THESE
VIEWS AND PORTFOLIO HOLDINGS MAY HAVE CHANGED SUBSEQUENT TO THESE DATES. NOTHING
IN THIS DOCUMENT IS A RECOMMENDATION TO PURCHASE OR SELL SECURITIES.
PORTFOLIO SHARES ARE NOT DEPOSITS OR OTHER OBLIGATIONS OF CREDIT SUISSE ASSET
MANAGEMENT, LLC ("CSAM") OR ANY AFFILIATE, ARE NOT FDIC INSURED AND ARE NOT
GUARANTEED BY CSAM OR ANY AFFILIATE. PORTFOLIO INVESTMENTS ARE SUBJECT TO
INVESTMENT RISKS, INCLUDING LOSS OF YOUR INVESTMENT.
<PAGE>
WARBURG PINCUS TRUST -- INTERNATIONAL EQUITY PORTFOLIO
ANNUAL INVESTMENT ADVISER'S REPORT -- DECEMBER 31, 1999
- --------------------------------------------------------------------------------
February 4, 2000
Dear Shareholder:
For the 12 months ended December 31, 1999, Warburg Pincus
Trust--International Equity Portfolio had a return of 53.43%, vs. a return of
31.80% for the Morgan Stanley All Country World Excluding the U.S. Index.
The period was a positive one for almost all foreign stock markets, though
results varied by region. Asian-Pacific markets had strong showings, fueled by
growing confidence that the worst of the region's economic difficulties were
finally behind it. European markets had generally solid returns in
local-currency terms, though for dollar-based, or unhedged, investors, these
gains were pared by weakness in European currencies vs. the dollar during the
period. Latin American markets, shaking off an early-period financial crisis in
Brazil, the region's economic powerhouse, ultimately saw healthy gains, as did
most of the rest of the emerging-market universe.
Against this backdrop, the Portfolio registered a healthy gain for the 12
months, and outperformed its benchmark. Supporting the Portfolio's performance
was our decision to increase its exposure to Asia, given the impressive rebound
in these markets through the period (our concentration on Japanese technology
and financial stocks proved particularly beneficial). One factor that hampered
the Portfolio somewhat was its exposure to European currencies, which were
hindered by the surprisingly weak debut of the euro vs. the dollar. This reduced
the local-currency share-price returns (which, overall, were solid) generated by
the Portfolio's European holdings.
With respect to regional strategies, we increased, as noted, our weighting in
Asian-Pacific markets during the period (from roughly 16% on December 31, 1998
to approximately 44% at the end of the period). This reflected our view that a
large number of long-struggling stocks here were attractively priced, given
improving financial and economic conditions across the region. Our increased
presence here was also based on the fair amount of genuine restructuring taking
place within Asia on both industry and company levels. By country, our
particular focus was on Japan, where we were modestly overweighted at the end of
the period. We also held small but still-meaningful weightings in Singapore,
South Korea and Taiwan.
We decreased our emphasis on Europe during the period, in general because we
saw more compelling stocks in Asia. That notwithstanding, we believe the
backdrop for European equities will remain supportive (and we could well raise
our weighting here over the near-to-intermediate term). One obvious reason for
optimism concerning Europe is the general improvement
1
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WARBURG PINCUS TRUST -- INTERNATIONAL EQUITY PORTFOLIO
ANNUAL INVESTMENT ADVISER'S REPORT -- DECEMBER 31, 1999 (CONT'D)
- --------------------------------------------------------------------------------
in the region's economic health. While forecasts vary widely by country,
aggregate output is projected to continue to rise, with positive implications
for corporate earnings, particularly within certain sectors. Also favorable for
equity markets is the ongoing crush of merger and acquisition activity, which
for 1999 is projected to reach record levels, perhaps exceeding the level of M
and A activity within the U.S. for the first time. Expectations of continued, if
not accelerated, activity should maintain broad upward pressure on share prices,
especially in those industries in which such activity is heaviest, particularly
banking, energy and telecommunications.
Elsewhere of note, we had some exposure to Canada, mostly via the resources
and communications areas, where we generally saw the best value. We largely
avoided Latin American markets through the period, deeming most stocks here to
be expensive from a risk-reward perspective, though we will continue to closely
monitor the region for buying opportunities.
Looking out over the next 12 months, we believe that foreign stock markets
generally stand to continue to benefit from an improving global economy,
particularly if Japan and/or Europe surprise on the up side (we believe that
each has the potential to show better-than-expected growth). That said, these
markets are likely to remain volatile, necessitating in our view continued
careful stock selection. Set within this environment, we will continue to strive
to identify markets and companies we deem to have the brightest long-term
prospects.
Harold E. Sharon P. Nicholas Edwards
Co-Portfolio Manager Co-Portfolio Manager
Harold W. Ehrlich Vincent J. McBride
Co-Portfolio Manager Co-Portfolio Manager
INTERNATIONAL INVESTING ENTAILS SPECIAL RISK CONSIDERATIONS, INCLUDING
CURRENCY FLUCTUATIONS, LOWER LIQUIDITY, ECONOMIC AND POLITICAL RISKS, AND
DIFFERENCES IN ACCOUNTING METHODS. THESE ARE DETAILED IN THE PORTFOLIO'S
PROSPECTUS, WHICH SHOULD BE READ CAREFULLY BEFORE INVESTING.
2
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WARBURG PINCUS TRUST -- INTERNATIONAL EQUITY PORTFOLIO
ANNUAL INVESTMENT ADVISER'S REPORT -- DECEMBER 31, 1999 (CONT'D)
- --------------------------------------------------------------------------------
GROWTH OF $10,000 INVESTED IN SHARES OF WARBURG PINCUS TRUST --
INTERNATIONAL EQUITY PORTFOLIO SINCE INCEPTION AS OF DECEMBER 31, 1999
The graph below illustrates the hypothetical investment of $10,000 in Shares
of Warburg Pincus Trust -- International Equity Portfolio from June 30, 1995
(inception) to December 31, 1999, compared to the Morgan Stanley Stanley All
Country World Excluding the U.S. Index ("MSCI")* for the same time period.
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
Portfolio MSCI
Jun-95 $10,000 $10,000
Jul-95 10,270 10,545
Aug-95 10,490 10,170
Sep-95 10,589 10,358
Oct-95 10,319 10,083
Nov-95 10,479 10,293
Dec-95 10,729 10,694
Jan-96 11,082 10,814
Feb-96 11,042 10,816
Mar-96 11,344 11,026
Apr-96 11,898 11,418
May-96 11,656 11,227
Jun-96 11,798 11,294
Jul-96 11,163 10,906
Aug-96 11,253 10,969
Sep-96 11,485 11,238
Oct-96 11,333 11,122
Nov-96 11,777 11,545
Dec-96 11,800 11,406
Jan-97 11,831 11,205
Feb-97 12,026 11,415
Mar-97 11,954 11,396
Apr-97 12,211 11,500
May-97 13,044 12,195
Jun-97 13,568 12,875
Jul-97 13,907 13,139
Aug-97 12,777 12,134
Sep-97 13,363 12,748
Oct-97 11,965 11,627
Nov-97 11,657 11,479
Dec-97 11,534 11,602
Jan-98 11,677 11,946
Feb-98 12,479 12,759
Mar-98 13,172 13,190
Apr-98 13,480 13,271
May-98 13,425 13,014
Jun-98 13,062 12,956
Jul-98 13,282 13,081
Aug-98 11,369 11,231
Sep-98 10,852 11,000
Oct-98 11,467 12,152
Nov-98 12,040 12,803
Dec-98 12,150 13,237
Jan-99 12,206 13,224
Feb-99 11,830 12,944
Mar-99 12,295 13,582
Apr-99 12,561 14,276
May-99 12,008 13,628
Jun-99 13,678 14,287
Jul-99 14,435 14,592
Aug-99 14,644 14,675
Sep-99 14,865 14,753
Oct-99 15,598 15,310
Nov-99 17,473 15,917
Dec-99 19,629 17,446
- ---------------
* The Morgan Stanley All Country World Excluding the U.S. Index is a
market-capitalization weighted index of companies listed on stock exchanges
outside of the United States. It is an unmanaged index (with no defined
investment objective) and includes reinvestment of dividends.
3
<PAGE>
WARBURG PINCUS TRUST -- SMALL COMPANY GROWTH PORTFOLIO
ANNUAL INVESTMENT ADVISER'S REPORT-- DECEMBER 31, 1999
- --------------------------------------------------------------------------------
February 4, 2000
Dear Shareholder:
For the 12 months ended December 31, 1999, Warburg Pincus Trust--Small
Company Growth Portfolio had a return of 69.08%, vs. a return of 43.10% for the
Russell 2000 Growth Index.
The period was a positive one for small capitalization stocks, with growth
oriented small caps showing particular strength. This reflected improving
economic and financial conditions abroad, which eased the risk avoidance mindset
that had hindered small cap stocks since the Asian crisis erupted in late 1997.
The group was also aided by a surprisingly healthy U.S. economy, which fueled
optimism over small companies' earnings prospects. The strengthening economy did
create inflation and interest rate worries, however, which resulted in a rather
volatile environment for small caps, particularly over the latter part of the
period.
Against this backdrop, the Portfolio had a solid gain in absolute terms and
handily outpaced its benchmark. We significantly increased our weightings in the
technology and communications areas during the period, which proved a beneficial
move, as these stocks paced the market's advance through the 12 months. We
deemed a number of these stocks to be attractive, given their valuations and
their underlying companies' long term growth prospects.
Some sector weighting adjustments aside, we made no material changes to the
Portfolio during the period with respect to general strategy, remaining focused
on well managed companies offering innovative products and services. With regard
to major investment themes, we continued to emphasize companies that stand to
benefit from a global push for enhanced productivity, as well as those standing
to benefit from the ongoing Internet driven communications revolution. In this
context, our primary areas of concentration at the end of the period were the
electronics, computer, communications and media and telecommunications and
equipment sectors. The rest of the Portfolio was invested across a range of
sectors, including the business services, oil services and healthcare areas.
Looking out over 2000 and beyond, we believe that while small cap stocks will
likely remain volatile, they have solid longer term growth potential, supported
by a confluence of positive factors. For one, despite the recent rally in these
issues, the group's valuations remain compelling compared to those on large cap,
blue chip stocks. Buttressing the group's relatively attractive valuations is a
favorable earnings outlook for these companies (the group's earnings growth is
expected to exceed that of the large cap group
4
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WARBURG PINCUS TRUST -- SMALL COMPANY GROWTH PORTFOLIO
ANNUAL INVESTMENT ADVISER'S REPORT -- DECEMBER 31, 1999 (CONT'D)
- --------------------------------------------------------------------------------
over the coming year and over the longer term). Another factor that stands to
broadly support the group is merger and acquisition activity. Large companies
have been acquiring smaller ones at a frantic pace, a trend we believe will
continue, if not accelerate, with positive implications for numerous small cap
stocks. This stands to continue to draw investors to the group, barring an
unforeseen surge in interest rates and provided the global economy stays on
track. Set within this environment, we will continue to strive to identify
stocks with the brightest long-term prospects.
Stephen J. Lurito Elizabeth B. Dater Sammy Oh
Co-Portfolio Manager Co-Portfolio Manager Co-Portfolio Manager
INVESTING IN SMALL COMPANIES ENTAILS SPECIAL RISK CONSIDERATIONS. THESE ARE
DETAILED IN THE PROSPECTUS, WHICH SHOULD BE READ CAREFULLY BEFORE INVESTING.
5
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WARBURG PINCUS TRUST -- SMALL COMPANY GROWTH PORTFOLIO
ANNUAL INVESTMENT ADVISER'S REPORT -- DECEMBER 31,1999 (CONT'D)
- --------------------------------------------------------------------------------
GROWTH OF $10,000 INVESTED IN WARBURG PINCUS
TRUST -- SMALL COMPANY GROWTH PORTFOLIO SINCE INCEPTION
AS OF DECEMBER 31, 1999
The graph below illustrates the hypothetical investment of $10,000 in Warburg
Pincus Trust -- Small Company Growth Portfolio from June 30, 1995 (inception) to
December 31, 1999, compared to the Russell 2000 Growth Index ("R2000G")* for the
same time period.
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
Portfolio R2000G
Jun-95 $10,000 $10,000
Jul-95 10,320 10,779
Aug-95 11,040 10,912
Sep-95 11,560 11,137
Oct-95 11,190 10,589
Nov-95 11,991 11,057
Dec-95 12,511 11,302
Jan-96 12,361 11,208
Feb-96 12,840 11,719
Mar-96 13,131 11,951
Apr-96 14,420 12,869
May-96 15,150 13,529
Jun-96 14,280 12,650
Jul-96 12,691 11,105
Aug-96 13,701 11,928
Sep-96 14,371 12,542
Oct-96 13,921 12,001
Nov-96 13,931 12,335
Dec-96 14,241 12,575
Jan-97 14,582 12,889
Feb-97 13,522 12,111
Mar-97 12,441 11,257
Apr-97 12,251 11,126
May-97 13,981 12,799
Jun-97 14,621 13,233
Jul-97 15,402 13,911
Aug-97 15,822 14,328
Sep-97 17,213 15,472
Oct-97 16,423 14,542
Nov-97 16,142 14,196
Dec-97 16,483 14,204
Jan-98 15,863 14,015
Feb-98 17,234 15,252
Mar-98 18,114 15,892
Apr-98 18,234 15,989
May-98 16,844 14,827
Jun-98 17,274 14,979
Jul-98 15,624 13,728
Aug-98 12,463 10,559
Sep-98 13,353 11,630
Oct-98 13,874 12,236
Nov-98 14,884 13,186
Dec-98 16,014 14,379
Jan-99 16,405 15,026
Feb-99 14,845 13,651
Mar-99 15,505 14,137
Apr-99 15,505 15,385
May-99 15,595 15,410
Jun-99 17,095 16,222
Jul-99 17,056 15,721
Aug-99 16,986 15,133
Sep-99 17,706 15,425
Oct-99 19,008 15,820
Nov-99 22,049 17,493
Dec-99 27,081 20,578
- --------------
* 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.
6
<PAGE>
WARBURG PINCUS TRUST -- POST-VENTURE CAPITAL PORTFOLIO
ANNUAL INVESTMENT ADVISER'S REPORT -- DECEMBER 31, 1999
- --------------------------------------------------------------------------------
February 4 , 2000
Dear Shareholder:
For the 12 months ended December 31, 1999, Warburg Pincus Trust--Post-Venture
Capital Portfolio had a return of 62.94%, vs. returns of 43.10% for the Russell
2000 Growth Index, 55.48% for the Russell 2500 Growth Index and 71.67% for the
NASDAQ Industrial Index.
The period saw healthy gains for the aggressive growth stocks targeted by the
Portfolio, buoyed by favorable news regarding the global economy, most
specifically signs of rebound within Japan and emerging markets and better than
expected growth in the U.S. These developments eased risk concerns (which had
weighed heavily on aggressive growth stocks over much of the previous 12 months)
while fueling optimism over earnings generally.
Against this backdrop, the Portfolio registered a solid gain, with
respectable performance compared to its benchmarks. The Portfolio benefited from
the vastly improved environment for aggressive growth stocks and from good
performances from a number of the Portfolio's holdings, especially its
technology and communications stocks.
We continued, through the period, to emphasize stocks of well managed, well
financed companies offering innovative products and services. In terms of sector
allocation, primary areas of emphasis for the Portfolio during the period
included the communications and media and telecommunications and equipment
sectors, weightings we raised during the period. This reflected our belief that
specific trends--most notably, the ongoing Internet driven communications
revolution--stand to benefit numerous companies in these areas over time.
Other notable sector weightings included financial services, where we
maintained a mix of asset management and insurance companies; computers, where
we remained biased toward domestically oriented software companies; and business
services. Our holdings within the last sector included companies specializing in
electronic commerce distribution and fulfillment services, a number of which in
our view have significant potential for long term growth.
Going forward, we remain positive on the collective prospects for stocks of
post-venture capital companies. (We define a post-venture capital company as one
that has received venture capital financing either during the early stages of
the company's existence or the development of a new product or service, or as
part of a restructuring or recapitalization. The investment of venture capital
financing, distribution of securities to venture capital
7
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WARBURG PINCUS TRUST -- POST-VENTURE CAPITAL PORTFOLIO
ANNUAL INVESTMENT ADVISER'S REPORT -- DECEMBER 31, 1999 (CONT'D)
- --------------------------------------------------------------------------------
investors or initial public offering, whichever is later, will have been made
within 10 years of the Portfolio's investment.) This reflects optimism over the
asset class. Venture-backed companies tend to occupy the economy's rapid growth
industries (e.g., software, biotechnology, semiconductors and electronics, and
communications), and they have historically generated rapid growth of earnings
relative to companies that lacked such backing. We would caution investors,
however, that investing in post-venture capital companies involves certain
risks--e.g., the risk of heightened volatility--along with the potential for
significant long term rewards. But for those with a long term view and a
sufficiently high risk threshold, we believe that stocks of venture-backed
companies are well worthy of consideration. As always, we will continue to
devote our efforts to identifying those companies we deem to have the best
long-term prospects.
Elizabeth B. Dater Robert S. Janis
Co-Portfolio Manager Co-Portfolio Manager
BECAUSE OF THE NATURE OF THE PORTFOLIO'S HOLDINGS AND CERTAIN STRATEGIES IT
MAY USE, AN INVESTMENT IN THE PORTFOLIO INVOLVES CERTAIN RISKS AND MAY NOT BE
APPROPRIATE FOR ALL INVESTORS. THE PROSPECTUS CONTAINS MORE COMPLETE INFORMATION
ON THE SPECIAL RISK CONSIDERATIONS ASSOCIATED WITH POST-VENTURE CAPITAL
INVESTMENTS. IT SHOULD BE READ CAREFULLY BEFORE INVESTING.
8
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WARBURG PINCUS TRUST -- POST-VENTURE CAPITAL PORTFOLIO
ANNUAL INVESTMENT ADVISER'S REPORT -- DECEMBER 31, 1999 (CONT'D)
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GROWTH OF $10,000 INVESTED IN WARBURG PINCUS TRUST --
POST-VENTURE CAPITAL PORTFOLIO SINCE INCEPTION AS OF DECEMBER 31, 1999
The graph below illustrates a hypothetical investment of $10,000 in Warburg
Pincus Trust -- Post-Venture Capital Portfolio from September 30, 1996
(inception) to December 31, 1999, compared to the Russell 2000 Growth Index
("R2000G")*, the Russell 2500 Growth Index ("R2500G")** and the NASDAQ
Industrials Index ("NASDAQ")*** for the same time period.
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
Portfolio R2000G NASDAQ R2500G
Sep-96 $10,000 $10,000 $10,000 $10,000
Oct-96 9,730 9,569 9,720 9,689
Nov-96 9,760 9,835 10,075 10,044
Dec-96 9,760 10,027 10,018 10,093
Jan-97 10,200 10,277 10,464 10,395
Feb-97 9,520 9,657 9,900 9,940
Mar-97 8,870 8,975 9,191 9,286
Apr-97 8,900 8,871 9,001 9,328
May-97 9,880 10,205 10,240 10,446
Jun-97 10,090 10,551 10,678 10,795
Jul-97 10,950 11,092 11,381 11,480
Aug-97 10,860 11,424 11,592 11,760
Sep-97 11,570 12,336 12,416 12,591
Oct-97 10,840 11,595 11,454 11,805
Nov-97 10,840 11,319 11,290 11,624
Dec-97 11,063 11,326 11,024 11,583
Jan-98 10,932 11,175 10,950 11,432
Feb-98 12,032 12,162 11,834 12,413
Mar-98 12,742 12,672 12,295 12,874
Apr-98 12,911 12,749 12,544 12,991
May-98 12,022 11,823 12,016 12,157
Jun-98 12,522 11,944 12,044 12,246
Jul-98 11,312 10,947 11,367 11,335
Aug-98 8,941 8,420 8,748 8,759
Sep-98 9,591 9,273 9,315 9,527
Oct-98 9,951 9,757 10,069 10,170
Nov-98 10,761 10,514 10,973 10,893
Dec-98 11,821 11,466 11,776 11,942
Jan-99 12,181 11,982 12,714 12,287
Feb-99 11,261 10,885 11,773 11,291
Mar-99 12,132 11,273 12,520 11,817
Apr-99 12,231 12,268 13,456 12,760
May-99 12,061 12,288 13,269 12,891
Jun-99 13,282 12,936 14,730 13,803
Jul-99 12,682 12,536 14,317 13,521
Aug-99 12,754 12,067 14,135 13,229
Sep-99 12,774 12,300 14,534 13,324
Oct-99 13,841 12,615 15,124 13,973
Nov-99 15,923 13,948 17,488 15,623
Dec-99 19,373 16,407 20,221 18,570
- ----------------
* The Russell 2000 Growth Index is an unmanaged index (with no defined
investment objective) of those securities in the Russell 2000 Growth Index
with a greater-than-average growth orientation. It includes reinvestment of
dividends, and is compiled by Frank Russell Company.
** The Russell 2500 Growth Index measures the performance of those companies in
the Russell 2500 Index with higher price-to-book values and higher forecasted
growth rates. It includes reinvestment of dividends, and is compiled by Frank
Russell Company.
***The NASDAQ Industrial Index is an unmanaged index that measures the stock
price performance of more than 3000 industrial issues included in the NASDAQ
OTC Composite Index. The NASDAQ OTC Composite Index represents 4500 stocks
traded over the counter.
9
<PAGE>
WARBURG PINCUS TRUST -- GROWTH & INCOME PORTFOLIO
ANNUAL INVESTMENT ADVISER'S REPORT-- DECEMBER 31, 1999
- --------------------------------------------------------------------------------
February 4 , 2000
Dear Shareholder:
For the 12 months ended December 31, 1999, Warburg Pincus Trust--Growth &
Income Portfolio had a return of 6.24%, vs. a return of 21.02% for the S&P 500
Index. Note: Effective December 31, 1999, Brian S. Posner no longer serves as
Co-Portfolio Manager. As of that date, Scott T. Lewis and Stacy Dutton serve as
Co-Portfolio Managers.
MANAGER COMMENTARY
The U.S. stock market saw impressive performance for the 12 months, with
almost all major equity indexes advancing significantly. A positive tone was set
early on. Most of the world's central banks lowered interest rates late in 1998,
stabilizing global financial markets and placing the global economy on surer
footing. This encouraged investors to embrace risk, a sentiment that benefited
stocks generally and growth stocks (especially aggressive growth stocks) in
particular. Stocks were, however, highly, and increasingly, volatile. The market
was also subjected to some dramatic shifts in investor sentiment with respect to
"style." For example, economically sensitive stocks had a strong surge in April,
but then surrendered market leadership to growth stocks, partly on worries that
rising interest rates could hamper economic growth.
Against this backdrop, the Portfolio had a gain, but trailed its benchmark by
a fairly wide margin. Hampering the Portfolio was investors' overwhelming
preference for growth oriented companies during much of the period, as we
continued to employ a value based stock selection process. That notwithstanding,
we believe our value disciplines stand to generate attractive returns over
time--in both absolute and relative terms--while potentially limiting overall
Portfolio volatility.
We made few noteworthy changes to the Portfolio during the period in terms of
sector emphasis, remaining broadly diversified. We did, however, increase our
exposure to certain economically sensitive industries, based on our view that
the global economy will, in fact, continue to grow, if not accelerate. We
significantly increased our exposure to the banking area, reflecting our
favorable view of the group's valuations, combined with these companies'
potential to benefit from an improving economy. We added a number of bank
stocks, focusing on regional companies whose loan portfolios include commercial
as well as residential loans.
We also raised our weighting in the energy sector. Our noteworthy moves here
included adding to our position in integrated multinational oil
10
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WARBURG PINCUS TRUST -- GROWTH & INCOME PORTFOLIO
ANNUAL INVESTMENT ADVISER'S REPORT -- DECEMBER 31, 1999 (CONT'D)
- --------------------------------------------------------------------------------
companies, focusing on those that stand to realize significant costs savings
over time. In the oil services area, our exposure at the end of period consisted
of two drilling companies that we believe have good longer-term prospects. In
general, fundamentals here are beginning to improve after nearly two years of
very difficult operating conditions.
Other notable sector weightings for the Portfolio continued to include
capital equipment, a weighting we raised during the period, focusing on
companies with the potential for a significant improvement in cash flows. We
also had a noteworthy weighting in the retail sector, where companies are
generally benefiting from ongoing improvements in inventory management and where
stocks are, on the whole, reasonably priced.
We modestly lowered our exposure to technology companies during the period,
eliminating a few positions based on valuation considerations. Elsewhere, we
remained underweighted in the healthcare and pharmaceutical sectors, though we
added a few drug stocks late in the period, and could increase our overall
exposure to healthcare further during the next few months. Healthcare stocks
have struggled over the past year, hampered by regulatory uncertainties, and we
believe potentially lucrative investment opportunities exist in specific stocks.
Our approach to the group will remain highly selective.
Looking ahead, we believe that there will remain a number of attractive
investment opportunities, the U.S. equity market's generally elevated valuations
notwithstanding. As always, we will continue to strive to identify reasonably
valued stocks of companies with strong revenue and earnings growth, good free
cash flow and improving financial returns.
Scott T. Lewis Stacy Dutton
Co-Portfolio Manager Co-Portfolio Manager
11
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WARBURG PINCUS TRUST -- GROWTH & INCOME PORTFOLIO
ANNUAL INVESTMENT ADVISER'S REPORT -- DECEMBER 31, 1999 (CONT'D)
- --------------------------------------------------------------------------------
GROWTH OF $10,000 INVESTED IN WARBURG PINCUS
TRUST -- GROWTH & INCOME PORTFOLIO
SINCE INCEPTION AS OF DECEMBER 31, 1999
The graph below illustrates the hypothetical investment of $10,000 in Warburg
Pincus Trust -- Growth & Income Portfolio from October 31, 1997 (inception) to
December 31, 1999, compared to the S&P 500 Index* for the same period.
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
Portfolio S&P 500 Index
Oct-97 $10,000 $10,000
Nov-97 10,130 10,462
Dec-97 10,389 10,642
Jan-98 10,450 10,759
Feb-98 11,133 11,534
Mar-98 11,555 12,125
Apr-98 11,595 12,247
May-98 11,565 12,037
Jun-98 11,676 12,526
Jul-98 11,375 12,393
Aug-98 9,755 10,601
Sep-98 10,037 11,281
Oct-98 10,741 12,198
Nov-98 11,354 12,937
Dec-98 11,648 13,682
Jan-99 11,719 14,254
Feb-99 11,445 13,811
Mar-99 11,577 14,363
Apr-99 12,875 14,919
May-99 13,017 14,567
Jun-99 13,423 15,376
Jul-99 12,956 14,896
Aug-99 12,712 14,822
Sep-99 12,378 14,415
Oct-99 12,439 15,328
Nov-99 12,368 15,639
Dec-99 12,375 16,559
- ----------------
* The S&P 500 Index is an unmanaged index (with no defined investment
objective) of common stocks, includes reinvestment of dividends, and is a
registered trademark of McGraw-Hill Co., Inc.
12
<PAGE>
WARBURG PINCUS TRUST -- EMERGING MARKETS PORTFOLIO
ANNUAL INVESTMENT ADVISER'S REPORT-- DECEMBER 31, 1999
- --------------------------------------------------------------------------------
February 4, 2000
Dear Shareholder:
For the 12 months ended December 31, 1999, Warburg Pincus Trust--Emerging
Markets Portfolio had a return of 81.40%, vs. a return of 66.41% for the Morgan
Stanley Emerging Markets Free Index.
Most emerging markets had impressive gains for the 12 months, buoyed by a
vast improvement in investor sentiment toward the group. This reflected a global
easing of monetary policy late in 1998, an apparent rebound in Japan's long
dormant economy and a flow of encouraging news regarding emerging market
economies. Combined, these developments helped reverse the risk avoidance
mindset that had plagued the group since the Asia crisis erupted in late 1997.
Against this backdrop, the Portfolio had a substantial gain in absolute terms
and outperformed its benchmark. The Portfolio benefited from the generally
healthy environment for emerging markets, and from good showings from a number
of its holdings, in particular its technology and telecommunication stocks.
We remained, through the period, fairly broadly diversified in terms of
sector exposure, with a bias in favor of the technology and financial areas.
With regard to the former, roughly 20% of the Portfolio was invested in
semiconductor, software and other technology stocks at the end of the period. In
general, we believe that emerging market technology companies have good longer
term prospects, given an improving global economy and the increasing demand for
outsourcing services from developed world companies. We also had an
approximately 20% weighting in the financial segment at the end of the period.
Many emerging market financial companies are in the midst of aggressive
restructuring programs, lowering costs and improving their capital management
and returns. These companies also stand to benefit from a more supportive
interest rate backdrop (while absolute interest rates within emerging markets
remain generally high, most are considerably below levels seen in 1998).
With respect to the Portfolio's regional allocation, we raised our exposure
to Asia during the period, ending the 12 months with a modest overweighting.
This reflected our view that a large number of Asian stocks were attractively
priced, given the region's improving macroeconomic prospects and ongoing
restructuring activity here. By country, we significantly increased our
weighting in South Korea, where the economy is growing at a healthy clip,
boosted by rising exports. We also raised our position in India over the course
of the period, a move based on company specific considerations as well as
top-down ones (e.g., we believe that India's macroeconomic backdrop could
improve as a result of political trends, given the increasing popularity of
India's reform-minded Bharatiya Janata Party, or
13
<PAGE>
WARBURG PINCUS TRUST -- EMERGING MARKETS PORTFOLIO
ANNUAL INVESTMENT ADVISER'S REPORT -- DECEMBER 31, 1999 (CONT'D)
- --------------------------------------------------------------------------------
BJP). Asian countries in which we had smaller, though still meaningful
weightings included Singapore and Malaysia.
We were underweighted in Latin America through the 12 months, though we added
significantly to our position here over the latter part of the period. Most
specifically, we added a number of stocks from Brazil and Mexico that we deemed
to be attractively priced, based on what we viewed as the region's improving
economic prospects.
Elsewhere, noteworthy country allocations for the Portfolio continued to
include South Africa, where our focus remained on financial services and
resources companies that we believe will benefit from a recovery in certain
commodity prices. One area in which we were underweighted at the end of the
period was Eastern Europe, reflecting our general near term concerns regarding
the region's current account deficits, inflation and interest rates. That aside,
we deemed certain markets here to be compelling, e.g., Turkey, a weighting we
raised during the period.
Looking ahead, our outlook on the longer term prospects for emerging markets
remains positive. This largely reflects optimism over the global economy.
Notably, the world's economic powerhouses--Japan, Europe and the U.S., regions
that account for the bulk of emerging markets' customers--are all projected to
grow over the next year and beyond, in welcome contrast to recent years.
Assuming those projections are accurate, numerous emerging market companies
across a range of industries stand to continue to see significant revenue and
earnings improvements. Our optimism is also based on the group's valuations,
which, despite these markets' recent rally, range from reasonable to very
compelling. We would caution investors, however, that emerging markets can be
extremely volatile over the short term, and therefore individuals with
relatively low tolerance for risk would probably be best served by a more
conservative investment. But for those with a longer term investment horizon,
and a sufficiently high threshold for risk, we believe emerging markets remain
attractive for their significant long term return potential, and we will
continue to strive to identify companies with the best long-term prospects.
Harold E. Sharon Vincent J. McBride
Co-Portfolio Manager Co-Portfolio Manager
INTERNATIONAL INVESTING ENTAILS SPECIAL RISK CONSIDERATIONS, INCLUDING
CURRENCY FLUCTUATIONS, LOWER LIQUIDITY, ECONOMIC AND POLITICAL RISKS, AND
DIFFERENCES IN ACCOUNTING METHODS; THESE RISKS ARE GENERALLY HEIGHTENED FOR
EMERGING-MARKET INVESTMENTS. THESE ARE DETAILED IN THE PORTFOLIO'S PROSPECTUS,
WHICH SHOULD BE READ CAREFULLY BEFORE INVESTING.
14
<PAGE>
WARBURG PINCUS TRUST -- EMERGING MARKETS PORTFOLIO
ANNUAL INVESTMENT ADVISER'S REPORT -- DECEMBER 31, 1999 (CONT'D)
- --------------------------------------------------------------------------------
GROWTH OF $10,000 INVESTED IN WARBURG PINCUS TRUST --
EMERGING MARKETS PORTFOLIO SINCE INCEPTION AS OF DECEMBER 31, 1999
The graph below illustrates a hypothetical investment of $10,000 in Warburg
Pincus Trust -- Emerging Markets Portfolio from December 31, 1997 (inception) to
December 31, 1999, compared to the Morgan Stanley Emerging Markets Free Index
("MSCI")* for the same time period.
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
Portfolio MSCI
Dec-97 $10,000 $10,000
Jan-98 10,270 10,297
Feb-98 11,760 10,997
Mar-98 12,111 11,369
Apr-98 11,941 11,439
May-98 10,261 11,217
Jun-98 9,530 11,168
Jul-98 9,680 11,275
Aug-98 7,040 9,680
Sep-98 7,490 9,482
Oct-98 7,970 10,474
Nov-98 8,331 11,036
Dec-98 8,271 11,410
Jan-99 7,755 11,399
Feb-99 7,513 11,157
Mar-99 8,199 11,707
Apr-99 9,411 12,305
May-99 9,724 11,746
Jun-99 11,077 12,315
Jul-99 11,097 12,577
Aug-99 11,228 12,649
Sep-99 10,854 12,716
Oct-99 11,328 13,197
Nov-99 12,985 13,719
Dec-99 15,001 15,038
- ---------------
* The Morgan Stanley Emerging Markets Free Index is a
market-capitalization-weighted index of emerging-market countries determined
by Morgan Stanley. The index includes only those countries open to non-local
investors.
15
<PAGE>
WARBURG PINCUS TRUST -- EMERGING GROWTH PORTFOLIO
ANNUAL INVESTMENT ADVISER'S REPORT-- DECEMBER 31, 1999
- --------------------------------------------------------------------------------
February 4, 2000
Dear Shareholder:
Warburg Pincus Trust--Emerging Growth Portfolio had a cumulative return of
31.95% for the period September 13, 1999 (commencement of operations) through
December 31, 1999.
The period was a positive one for emerging growth stocks (broadly defined as
stocks of small and medium sized companies with above average growth rates).
These stocks were supported by optimism over the group's earnings prospects and
by investors' dissipating worries over the Y2K computer bug and attendant risk
factors. The Portfolio benefited from this favorable backdrop, and from good
showings from a number of its holdings, in particular its technology and
communications holdings.
Our focus, through the period, was on well managed companies offering
innovative products and services. With regard to major investment themes, we
emphasized companies that stand to benefit from a global push for enhanced
productivity, as well as those standing to benefit from the ongoing Internet
driven communications revolution. In this context, our primary areas of
concentration at the end of the period were the electronics, computer,
communications and media and telecommunications and equipment sectors. The rest
of the Portfolio was invested across a range of sectors, including the business
services, oil services and healthcare areas.
Looking out to 2000 and beyond, we believe that while emerging growth stocks
will likely remain volatile, they have solid longer term growth potential,
supported by a confluence of positive factors. For one, despite the recent rally
in these issues, the group's valuations remain compelling compared to those on
large cap, blue chip stocks. Buttressing the group's relatively attractive
valuations is a favorable earnings outlook for these companies (the group's
earnings growth is expected to exceed that of the large cap group over the
coming year and over the longer term). Another factor that stands to broadly
support the group is merger and acquisition activity. Large companies have been
acquiring smaller ones at a frantic pace, a trend that we believe will continue,
if not accelerate, with positive implications for numerous small companies'
share prices. These factors stand to continue to draw investors to the group,
barring an unforeseen sharp rise in interest rates and provided the global
economy stays on track. Set within this environment, we will continue to strive
to identify stocks with the brightest long term prospects.
Elizabeth B. Dater Stephen J. Lurito
Co-Portfolio Manager Co-Portfolio Manager
INVESTING IN EMERGING GROWTH COMPANIES ENTAILS SPECIAL RISK CONSIDERATIONS.
THESE ARE DETAILED IN THE PROSPECTUS, WHICH SHOULD BE READ CAREFULLY BEFORE
INVESTING.
16
<PAGE>
WARBURG PINCUS TRUST -- INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS--DECEMBER 31, 1999
- --------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
-------- -----
COMMON STOCKS (93.7%)
AUSTRIA (0.5%)
OMV AG 29,900 $ 2,905,982
------------
BRAZIL (0.5%)
Tele Norte Leste Participacoes SA ADR 129,900 3,312,450
------------
CANADA (2.0%)
Canadian Natural Resources, Ltd.(DAGGER) 72,000 1,758,227
OCI Communications, Inc.(DAGGER) 231,100 2,401,455
Research in Motion, Ltd.(DAGGER) 72,200 3,336,155
Rogers Communications, Inc. Class B(DAGGER) 182,200 4,455,601
------------
11,951,438
------------
DENMARK (1.5%)
International Service System AS Class B(DAGGER) 137,000 9,205,944
------------
FINLAND (0.1%)
Helsingin Puhelin Oyj 11,100 924,534
------------
FRANCE (9.2%)
Alstom SA(DAGGER) 150,600 5,020,506
Banque Nationale de Paris 134,015 12,363,555
Coflexip SA 6,500 472,329
Coflexip SA ADR 22,600 858,800
Lagardere Groupe SCA 104,850 5,702,387
Pechiney SA Class A 107,140 7,655,940
Publicis SA 5,100 1,926,176
Societe Generale d'Enterprises SA 89,800 4,205,559
Suez Lyonnaise des Eaux SA 20,300 3,252,825
Total Fina SA Class B 108,296 14,451,828
------------
55,909,905
------------
GERMANY (6.3%)
Deutsche Bank AG 18,000 1,523,718
Dresdner Bank AG 86,000 4,668,547
Fresenius Medical Care AG 69,200 5,871,790
Hannover Rueckversicherungs AG 45,500 3,551,465
Intershop Communications AG(DAGGER) 8,000 2,288,247
Mannesmann AG 56,100 13,582,878
Siemens AG 51,400 6,574,479
------------
38,061,124
------------
HONG KONG (0.8%)
SmarTone Telecommunications Holdings, Ltd. 549,000 2,648,421
Wing Hang Bank, Ltd. 601,500 2,058,262
------------
4,706,683
------------
See Accompanying Notes to Financial Statements.
17
<PAGE>
WARBURG PINCUS TRUST -- INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (CONT'D)--DECEMBER 31, 1999
- --------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
-------- -----
COMMON STOCKS (CONT'D)
HUNGARY (1.7%)
Magyar Tavkozlesi 416,800 $ 2,917,913
OTP Bank 124,900 7,308,846
------------
10,226,759
------------
IRELAND (0.9%)
Bank of Ireland 696,199 5,539,299
------------
ISRAEL (0.5%)
Orbotech, Ltd. 41,100 3,185,250
-----------
ITALY (2.8%)
Concessioni e Costruzioni Autostrade SpA 797,800 5,431,693
Mediolanum SpA 388,000 5,080,068
Telecom Italia SpA 476,800 6,722,933
------------
17,234,694
------------
JAPAN (35.3%)
Advantest Corp. 35,100 9,275,717
Daiwa Securities Co., Ltd. 444,000 6,948,772
DDI Corp. 370 5,069,981
Fujitsu, Ltd. 140,000 6,385,436
Hikari Tsushin, Inc. 4,700 9,430,361
Hitachi, Ltd. 428,000 6,870,118
Hoya Corp. 72,000 5,672,898
Industrial Bank of Japan, Ltd. 456,000 4,396,202
Japan Telecom Co., Ltd. 1,980 7,945,581
JUSCO Co., Ltd. 225,000 3,922,140
KDD Corp. 58,600 8,121,523
Nikko Securities Co., Ltd. 904,000 11,440,462
Nomura Securities Co., Ltd. 612,000 11,051,581
NTT Mobile Communications Network, Inc. 485 18,655,672
Orix Corp. 30,600 6,894,509
Sakura Bank, Ltd. 461,000 2,671,156
Sanwa Bank, Ltd. 349,000 4,245,933
Sharp Corp. 275,000 7,038,514
Shimamura Co., Ltd. 16,300 2,584,516
Shohkoh Fund & Co., Ltd. 21,100 8,353,675
Softbank Corp. 25,700 24,600,763
Sony Corp. 48,700 14,442,694
Tokyo Electron, Ltd. 49,000 6,714,300
Tokyo Seimitsu Co., Ltd. 37,600 6,072,233
Trans Cosmos, Inc. 35,900 15,319,957
------------
214,124,694
------------
See Accompanying Notes to Financial Statements.
18
<PAGE>
WARBURG PINCUS TRUST -- INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (CONT'D)--DECEMBER 31, 1999
- --------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
-------- -----
COMMON STOCKS (CONT'D)
NETHERLANDS (3.2%)
Equant NV(DAGGER) 58,300 $ 6,617,394
Getronics NV 46,300 3,693,182
IHC Caland NV 101,690 3,712,622
Vedior NV 233,528 2,399,019
Vendex KBB NV 112,380 2,988,047
------------
19,410,264
------------
NORWAY (0.2%)
Tandberg Television ASA(DAGGER) 97,000 1,343,272
------------
PORTUGAL (1.3%)
Portugal Telecom SA 692,150 7,591,413
------------
SINGAPORE (3.2%)
DBS Land, Ltd. 1,882,500 3,707,355
Neptune Orient Lines, Ltd.(DAGGER) 2,238,000 2,996,542
Overseas Union Bank, Ltd. 2,181,014 12,767,869
------------
19,471,766
------------
SOUTH KOREA (4.2%)
Housing & Commercial Bank, Korea(DAGGER) 94,000 2,980,185
Hyundai Industrial Development & Construction 70,837 524,025
Samsung Electronics Co. 22,400 5,247,380
Shinhan Bank 365,100 3,954,848
SK Telecom Co., Ltd. 35,000 12,545,134
------------
25,251,572
------------
SPAIN (1.4%)
Banco Bilbao Vizcaya SA 597,300 8,506,216
------------
SWEDEN (3.9%)
Electrolux AB Series B 141,439 3,557,587
Nordbanken Holding AB 969,000 5,694,640
SKF AB Series B 202,500 4,926,834
Telefonaktiebolaget LM Ericsson ADR 143,100 9,399,881
------------
23,578,942
------------
SWITZERLAND (1.0%)
4M Technologies Holding SA(DAGGER) 5,400 1,624,443
Roche Holding AG 377 4,474,848
------------
6,099,291
------------
TAIWAN (1.2%)
Ambit Microsystems Corp. 391,000 2,902,756
Phoenixtec Power Co., Ltd.(DAGGER) 1,293,968 2,494,346
Taiwan Semiconductor Manufacturing Co. 334,970 1,782,380
------------
7,179,482
------------
See Accompanying Notes to Financial Statements.
19
<PAGE>
WARBURG PINCUS TRUST -- INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (CONT'D)--DECEMBER 31, 1999
- --------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
-------- -----
COMMON STOCKS (CONT'D)
TURKEY (1.9%)
Haci Omer Sabanci Holding AS 59,344,000 $ 3,446,416
Yapi ve Kredi Bankasi AS 259,327,000 8,008,347
------------
11,454,763
------------
UNITED KINGDOM (10.1%)
AstraZeneca Group PLC 263,800 10,942,662
British Aerospace PLC 1,215,200 8,047,942
British Telecommunications PLC 227,318 5,555,536
Corus Group PLC 1,197,500 3,114,258
Lloyds TSB Group PLC 687,824 8,605,021
Prudential Corp. PLC 466,032 9,183,934
Reed International PLC 646,100 4,837,296
Sage Group PLC 203,000 2,477,329
SmithKline Beecham PLC 537,200 6,855,139
Viatel, Inc.(DAGGER) 32,400 1,737,450
------------
61,356,567
------------
TOTAL COMMON STOCKS (Cost $387,560,213) 568,532,304
------------
PREFERRED STOCK (1.3%)
BRAZIL (0.5%)
Petroleo Brasileiro SA 12,888,000 3,281,749
------------
GERMANY (0.8%)
Marschollek, Lautenschlaeger und Partner AG 15,400 4,575,486
------------
TOTAL PREFERRED STOCK (Cost $6,360,751) 7,857,235
------------
WARRANTS (0.0%)
FRANCE (0.0%)
Banque Nationale de Paris, 07/01/02(DAGGER)
(Cost $216,362) 29,055 134,023
------------
SHORT TERM INVESTMENTS (5.0%)
Institutional Money Market Trust 379,168 379,168
RBB Money Market Portfolio 29,619,533 29,619,533
------------
TOTAL SHORT TERM INVESTMENTS (Cost $29,998,701) 29,998,701
------------
TOTAL INVESTMENTS AT VALUE (100.0%) (Cost $424,136,027*) $606,522,263
============
INVESTMENT ABBREVIATIONS
ADR = American Depository Receipt
- --------------------------------------------------------------------------------
(DAGGER) Non-income producing security.
* Also cost for federal income tax purposes. See Accompanying Notes to
Financial Statements.
20
<PAGE>
WARBURG PINCUS TRUST -- SMALL COMPANY GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS -- DECEMBER 31, 1999
- --------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
-------- -----
COMMON STOCK (94.9%)
BUSINESS SERVICES (7.7%)
Acxiom Corp.(DAGGER) 607,600 $ 14,582,400
Getty Images, Inc.(DAGGER) 482,800 23,596,850
HotJobs.com, Ltd.(DAGGER) 260,700 11,389,331
Metamor Worldwide, Inc.(DAGGER) 419,000 12,203,375
On Assignment, Inc.(DAGGER) 223,300 6,671,087
QRS Corp.(DAGGER) 176,950 18,458,097
Reckson Services Industries, Inc.(DAGGER) 194,500 12,131,937
--------------
99,033,077
--------------
CAPITAL EQUIPMENT (1.0%)
Applied Power, Inc. Class A 342,100 12,572,175
--------------
COMMUNICATIONS & MEDIA (9.4%)
Aether Systems, Inc.(DAGGER) 106,500 7,628,062
BackWeb Technologies, Ltd.(DAGGER) 287,900 12,127,788
Common Places(DAGGER) 277,778 5,516,150
Cumulus Media, Inc. Class A(DAGGER) 318,500 16,163,875
InfoSpace.com, Inc.(DAGGER) 122,200 26,150,800
NBC Internet, Inc.(DAGGER) 173,508 13,403,493
Pegasus Communications Corp.(DAGGER) 113,000 11,045,750
ValueVision International, Inc. Class A(DAGGER) 327,100 18,746,919
VerticalNet, Inc.(DAGGER) 59,900 9,823,600
--------------
120,606,437
--------------
COMPUTERS (19.6%)
Aspect Development, Inc.(DAGGER) 188,300 12,898,550
Bluestone Software, Inc.(DAGGER) 116,500 13,397,500
Business Objects SA ADR(DAGGER) 168,300 22,489,087
Documentum, Inc.(DAGGER) 300,100 17,968,487
Interleaf, Inc.(DAGGER) 16,400 551,450
Interleaf, Inc.(DAGGER) 400,000 13,450,000
Mercury Interactive Corp.(DAGGER) 150,700 16,266,181
National Instruments Corp.(DAGGER) 300,125 11,479,781
Peregrine Systems, Inc.(DAGGER) 419,600 34,669,450
Radiant Systems, Inc.(DAGGER) 500,800 20,125,900
Remedy Corp.(DAGGER) 357,400 16,931,825
Research in Motion, Ltd.(DAGGER) 271,800 12,553,762
RSA Security, Inc.(DAGGER) 342,600 26,551,500
Santa Cruz Operation, Inc.(DAGGER) 424,100 12,882,037
Sybase, Inc.(DAGGER) 228,300 3,881,100
Unify Corp.(DAGGER) 456,000 12,483,000
ZapMe! Corp.(DAGGER) 297,300 2,564,212
--------------
251,143,822
--------------
See Accompanying Notes to Financial Statements.
21
<PAGE>
WARBURG PINCUS TRUST -- SMALL COMPANY GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS (CONT'D)-- DECEMBER 31, 1999
- --------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
-------- -----
COMMON STOCKS (CONT'D)
CONSUMER SERVICES (1.0%)
DeVry, Inc.(DAGGER) 348,400 $ 6,488,950
Strayer Education, Inc. 313,800 6,197,550
--------------
12,686,500
--------------
ELECTRONICS (15.8%)
Adaptive Broadband Corp.(DAGGER) 298,200 22,010,887
Alpha Industries, Inc.(DAGGER) 225,100 12,901,044
ANADIGICS, Inc.(DAGGER) 240,200 11,334,437
Asyst Technologies, Inc.(DAGGER) 157,800 10,345,762
Avant! Corp.(DAGGER) 539,300 8,089,500
Burr-Brown Corp.(DAGGER) 505,500 18,261,187
C-Cube Microsystems, Inc.(DAGGER) 257,200 16,010,700
DSP Group, Inc.(DAGGER) 172,100 16,005,300
Etec Systems, Inc.(DAGGER) 188,000 8,436,500
Galileo Technology Ltd.(DAGGER) 416,200 10,040,825
Photronics, Inc.(DAGGER) 422,500 12,094,063
PRI Automation, Inc.(DAGGER) 158,000 10,605,750
QLogic Corp.(DAGGER) 89,400 14,292,825
SanDisk Corp.(DAGGER) 144,200 13,879,250
TriQuint Semiconductor, Inc.(DAGGER) 159,000 17,688,750
--------------
201,996,780
--------------
ENERGY (1.4%)
Barrett Resources Corp.(DAGGER) 180,400 5,310,525
Stone Energy Corp.(DAGGER) 355,000 12,646,875
--------------
17,957,400
--------------
FINANCIAL SERVICES (1.6%)
AmeriCredit Corp.(DAGGER) 291,900 5,400,150
Enhance Financial Services Group, Inc. 309,100 5,022,875
NextCard, Inc.(DAGGER) 220,200 6,358,275
Reinsurance Group of America, Inc. 152,300 4,226,325
--------------
21,007,625
--------------
HEALTHCARE (4.0%)
Advance Paradigm, Inc.(DAGGER) 554,700 11,960,719
Core, Inc.(DAGGER) 748,800 7,160,400
MiniMed, Inc.(DAGGER) 181,400 13,287,550
Oxford Health Plans, Inc.(DAGGER) 824,300 10,458,306
Renal Care Group, Inc. 358,750 8,385,781
--------------
51,252,756
--------------
See Accompanying Notes to Financial Statements.
22
<PAGE>
WARBURG PINCUS TRUST -- SMALL COMPANY GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS (CONT'D) -- DECEMBER 31, 1999
- --------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
-------- -----
COMMON STOCKS (CONT'D)
LEISURE & ENTERTAINMENT (2.2%)
Fairfield Communities, Inc.(DAGGER) 821,900 $ 8,835,425
Sunterra Corp. 594,000 6,831,000
THQ, Inc.(DAGGER) 522,400 12,113,150
--------------
27,779,575
--------------
METALS & MINING (0.2%)
Metals USA, Inc.(DAGGER) 331,600 2,818,600
--------------
OIL SERVICES (4.7%)
BJ Services Co.(DAGGER) 377,100 15,767,494
Cooper Cameron Corp.(DAGGER) 270,200 13,222,913
Petroleum Geo-Services ADR(DAGGER) 690,600 12,301,313
Smith International, Inc.(DAGGER) 370,900 18,429,094
Southern Mineral Corp.(DAGGER) 176,625 31,793
--------------
59,752,607
--------------
PHARMACEUTICALS (2.5%)
Alkermes, Inc.(DAGGER) 384,900 18,908,213
ChiRex, Inc. 292,200 4,273,425
Medicis Pharmaceutical Corp., Class A(DAGGER) 222,700 9,478,669
--------------
32,660,307
--------------
PUBLISHING (0.1%)
Scholastic Corp.(DAGGER) 24,400 1,517,375
--------------
RETAIL (2.1%)
99 Cents Only Stores(DAGGER) 119,850 4,584,263
Ames Department Stores, Inc.(DAGGER) 260,200 7,497,013
AnnTaylor Stores Corp.(DAGGER) 234,600 8,079,038
Linens `N Things, Inc.(DAGGER) 147,800 4,378,575
Pacific Sunwear of California, Inc.(DAGGER) 59,400 1,911,938
--------------
26,450,827
--------------
See Accompanying Notes to Financial Statements.
23
<PAGE>
WARBURG PINCUS TRUST -- SMALL COMPANY GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS (CONT'D) -- DECEMBER 31, 1999
- --------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
-------- -----
COMMON STOCKS (CONT'D)
TELECOMMUNICATIONS & EQUIPMENT (21.0%)
Advanced Fibre Communications, Inc.(DAGGER) 591,700 $ 26,441,594
ANTEC Corp.(DAGGER) 475,400 17,352,100
AudioCodes, Ltd.(DAGGER) 236,700 21,776,400
Cabletron Systems, Inc.(DAGGER) 566,700 14,734,200
Concentric Network Corp.(DAGGER) 404,400 12,460,575
CTC Communications Corp.(DAGGER) 475,600 18,555,831
Gilat Satellite Networks, Ltd.(DAGGER) 177,300 21,054,375
Omnipoint Corp.(DAGGER) 158,900 19,167,313
PairGain Technologies, Inc.(DAGGER) 858,500 12,179,969
Powertel, Inc.(DAGGER) 187,600 18,830,350
Powerwave Technologies, Inc.(DAGGER) 241,600 14,103,400
Proxim, Inc.(DAGGER) 251,500 27,665,000
Spectrian Corp.(DAGGER) 514,000 14,520,500
Tekelec(DAGGER) 486,100 10,937,250
Viatel, Inc.(DAGGER) 343,300 18,409,463
--------------
268,188,320
--------------
TRANSPORTATION (0.6%)
Swift Transportation Co., Inc.(DAGGER) 415,550 7,324,069
--------------
TOTAL COMMON STOCK (Cost $735,736,397) 1,214,748,252
--------------
SHORT TERM INVESTMENTS (5.1%)
Institutional Money Market Trust 4,178,857 4,178,857
RBB Money Market Portfolio 60,910,465 60,910,465
--------------
TOTAL SHORT TERM INVESTMENTS (Cost $65,089,322) 65,089,322
---------------
TOTAL INVESTMENTS AT VALUE (100.0%) (Cost $800,825,719*) $1,279,837,574
==============
INVESTMENT ABBREVIATIONS
ADR = American Depository Receipt
- --------------------------------------------------------------------------------
(DAGGER) Non-income producing security.
# Restricted security.
* Cost for federal income tax purposes is $802,306,635.
See Accompanying Notes to Financial Statements.
24
<PAGE>
WARBURG PINCUS TRUST -- POST-VENTURE CAPITAL PORTFOLIO
SCHEDULE OF INVESTMENTS -- DECEMBER 31, 1999
- --------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
-------- -----
COMMON STOCK (91.1%)
BANKS & SAVINGS & LOANS (1.4%)
Mellon Financial Corp. 62,800 $ 2,139,125
------------
BUSINESS SERVICES (8.8%)
ACNielsen Corp.(DAGGER) 70,100 1,726,212
BISYS Group, Inc.(DAGGER) 24,700 1,611,675
On Assignment, Inc.(DAGGER) 22,800 681,150
QRS Corp.(DAGGER) 24,300 2,534,794
Saatchi & Saatchi PLC ADR 49,300 1,497,487
Startek, Inc.(DAGGER) 30,600 1,109,250
TMP Worldwide, Inc.(DAGGER) 11,600 1,647,200
Young & Rubicam, Inc.(DAGGER) 38,600 2,730,950
------------
13,538,718
------------
COMMUNICATIONS & MEDIA (16.5%)
America Online, Inc.(DAGGER) 20,700 1,561,556
AMFM, Inc.(DAGGER) 25,500 1,995,375
Cablevision Systems Corp.(DAGGER) 14,400 1,087,200
CMGI, Inc.(DAGGER) 14,300 3,959,312
Excite@Home Corp. Series A(DAGGER) 32,300 1,384,862
Hispanic Broadcasting Corp.(DAGGER) 11,400 1,051,294
Infinity Broadcasting Corp.(DAGGER) 41,212 1,491,359
MaMaMedia, Inc.(DAGGER) # 92,592 499,997
Radio Unica Communications(DAGGER) 50,600 1,461,075
Shaw Communications, Inc. Class B 55,300 1,831,812
USA Networks, Inc.(DAGGER) 52,800 2,917,200
Westwood One, Inc.(DAGGER) 19,300 1,466,800
Yahoo!, Inc.(DAGGER) 10,600 4,586,487
------------
25,294,329
------------
COMPUTERS (17.6%)
BMC Software, Inc.(DAGGER) 28,600 2,286,212
Citrix Systems, Inc.(DAGGER) 26,000 3,198,000
Concord Communications, Inc.(DAGGER) 21,700 962,937
Documentum, Inc.(DAGGER) 26,600 1,592,675
Intuit, Inc.(DAGGER) 61,400 3,680,162
Network Appliance, Inc.(DAGGER) 49,000 4,070,062
Sun Microsystems, Inc.(DAGGER) 32,200 2,493,487
VeriSign, Inc(DAGGER) 22,200 4,234,650
VERITAS Software Corp.(DAGGER) 31,100 4,451,187
------------
26,969,372
------------
CONSUMER NON-DURABLES (0.5%)
Dial Corp. 30,100 731,806
------------
CONSUMER SERVICES (1.0%)
DeVry, Inc.(DAGGER) 80,800 1,504,900
------------
See Accompanying Notes to Financial Statements.
25
<PAGE>
WARBURG PINCUS TRUST -- POST-VENTURE CAPITAL PORTFOLIO
SCHEDULE OF INVESTMENTS (CONT'D) -- DECEMBER 31, 1999
- --------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
-------- -----
COMMON STOCK (cont'd)
ELECTRONICS (13.2%)
Altera Corp.(DAGGER) 33,500 $ 1,660,344
Flextronics International Ltd. 51,200 2,355,200
JDS Uniphase Corp.(DAGGER) 32,600 5,258,788
KLA-Tencor Corp.(DAGGER) 11,900 1,325,363
Maxim Integrated Products, Inc.(DAGGER) 67,200 3,171,000
Solectron Corp.(DAGGER) 16,700 1,588,588
Synopsys, Inc.(DAGGER) 11,200 747,600
Vitesse Semiconductor Corp.(DAGGER) 29,200 1,531,175
Xilinx, Inc.(DAGGER) 56,000 2,546,250
------------
20,184,308
------------
ENERGY (1.0%)
Chaparral Resources, Inc.(DAGGER) # 2,778 21,877
Newfield Exploration Co.(DAGGER) 55,500 1,484,625
------------
1,506,502
------------
FINANCIAL SERVICES (3.7%)
AMBAC Financial Group, Inc. 40,100 2,092,719
AMVESCAP PLC ADR 9,700 548,050
Gabelli Asset Management, Inc. Class A(DAGGER) 63,500 1,031,875
MBIA, Inc. 22,500 1,188,281
T. Rowe Price Associates, Inc. 21,100 779,381
------------
5,640,306
------------
HEALTHCARE (2.3%)
Ivax Corp.(DAGGER) 61,400 1,581,050
Oxford Health Plans, Inc.(DAGGER) 68,500 869,094
Princeton Video Image, Inc.(DAGGER) 90,909 727,272
Women First Healthcare, Inc.(DAGGER) 50,100 263,025
------------
3,440,441
------------
LEISURE & ENTERTAINMENT (1.1%)
Fairfield Communities, Inc.(DAGGER) 35,400 380,550
Premier Parks, Inc.(DAGGER) 47,100 1,360,013
------------
1,740,563
------------
OIL SERVICES (2.9%)
Cooper Cameron Corp.(DAGGER) 33,700 1,649,194
Nabors Industries, Inc.(DAGGER) 51,200 1,584,000
Petroleum Geo-Services ADR(DAGGER) 63,400 1,129,313
------------
4,362,507
------------
PHARMACEUTICALS (2.7%)
Amgen, Inc.(DAGGER) 33,300 2,000,081
MedImmune, Inc.(DAGGER) 13,100 2,172,963
------------
4,173,044
------------
See Accompanying Notes to Financial Statements.
26
<PAGE>
WARBURG PINCUS TRUST -- POST-VENTURE CAPITAL PORTFOLIO
SCHEDULE OF INVESTMENTS (CONT'D) -- DECEMBER 31, 1999
- --------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
-------- -----
COMMON STOCK (cont'd)
PUBLISHING (2.2%)
Central Newspapers, Inc. Class A 44,500 $ 1,752,188
Scholastic Corp.(DAGGER) 25,300 1,573,344
------------
3,325,532
------------
RETAIL (1.4%)
Amazon.com, Inc.(DAGGER) 8,200 624,225
Bed, Bath & Beyond, Inc.(DAGGER) 18,500 642,875
Saks, Inc. 59,000 918,188
------------
2,185,288
------------
TELECOMMUNICATIONS & EQUIPMENT (14.8%)
Amdocs, Ltd.(DAGGER) 32,600 1,124,700
ANTEC Corp.(DAGGER) 37,300 1,361,450
CIENA Corp.(DAGGER) 27,600 1,587,000
Cisco Systems, Inc.(DAGGER) 39,150 4,193,944
Covad Communications Group, Inc.(DAGGER) 21,300 1,191,469
Exodus Communications, Inc.(DAGGER) 52,600 4,671,538
Gilat Satellite Networks, Ltd.(DAGGER) 37,900 4,500,625
Pinnacle Holdings, Inc.(DAGGER) 61,300 2,597,588
Viatel, Inc. 27,700 1,485,413
------------
22,713,727
------------
TOTAL COMMON STOCK (Cost $81,875,705) 139,450,468
------------
FOREIGN COMMON STOCKS (0.8%)
UNITED KINGDOM (0.8%)
3i Group PLC 48,000 856,755
Corus Entertainment, Inc. 15,300 312,678
------------
TOTAL FOREIGN COMMON STOCKS (Cost $554,269) 1,169,433
------------
PREFERRED STOCK (0.6%)
Women.com Networks, Inc.(DAGGER) #
(Cost $302,251) 81,213 925,828
------------
SHORT TERM INVESTMENTS (7.5%)
Institutional Money Market Trust 4,228,173 4,228,173
RBB Money Market Portfolio 7,305,743 7,305,743
------------
TOTAL SHORT TERM INVESTMENTS (Cost $11,533,916) 11,533,916
------------
TOTAL INVESTMENTS AT VALUE (100.0%) (Cost $94,266,141*) $153,079,645
============
INVESTMENT ABBREVIATIONS
ADR = American Depository Receipt
- --------------------------------------------------------------------------------
(DAGGER) Non-income producing security.
# Restricted security.
* Cost for federal income tax purposes is $94,832,527.
See Accompanying Notes to Financial Statements.
27
<PAGE>
WARBURG PINCUS TRUST -- GROWTH & INCOME PORTFOLIO
SCHEDULE OF INVESTMENTS -- DECEMBER 31, 1999
- --------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
-------- -----
COMMON STOCK (97.9%)
AEROSPACE & DEFENSE (1.0%)
Honeywell International, Inc. 3,700 $ 213,444
-----------
BANKS & SAVINGS & LOANS (9.2%)
AmSouth Bancorp. 7,706 148,822
Chase Manhattan Corp. 1,300 100,994
Comerica, Inc. 12,100 564,919
Compass Bancshares, Inc. 9,200 205,275
Golden West Financial Corp. 5,000 167,500
SunTrust Banks, Inc. 2,100 144,506
UnionBanCal Corp. 4,100 161,694
Wachovia Corp. 4,000 272,000
Wells Fargo & Co. 2,500 101,094
-----------
1,866,804
-----------
BUILDING & BUILDING MATERIALS (1.5%)
USG Corp.(DAGGER) 6,400 301,600
-----------
BUSINESS SERVICES (0.6%)
Reynolds & Reynolds Co. Class A 5,900 132,750
-----------
CAPITAL EQUIPMENT (8.7%)
American Standard Cos., Inc.(DAGGER) 7,700 353,237
Caterpillar, Inc. 3,300 155,306
Emerson Electric Co. 2,150 123,356
Ingersoll-Rand Co. 8,000 440,500
ITT Industries, Inc. 5,600 187,250
Navistar International Corp.(DAGGER) 5,500 260,562
Parker-Hannifin Corp. 4,600 236,037
-----------
1,756,248
-----------
CHEMICALS (0.9%)
Ferro Corp. 8,250 181,500
-----------
COMMUNICATIONS & MEDIA (1.4%)
New York Times Co. Class A 5,800 284,925
-----------
COMPUTERS (4.3%)
Hewlett-Packard Co. 2,700 307,631
Unisys Corp. 17,500 558,906
-----------
866,537
-----------
CONGLOMERATES (1.3%)
Harsco Corp. 8,000 254,000
-----------
CONSUMER DURABLES (3.0%)
Ford Motor Co. 8,800 470,250
Meritor Automotive, Inc. 6,900 133,687
-----------
603,937
-----------
See Accompanying Notes to Financial Statements.
28
<PAGE>
WARBURG PINCUS TRUST -- GROWTH & INCOME PORTFOLIO
SCHEDULE OF INVESTMENTS (CONT'D) -- DECEMBER 31, 1999
- --------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
-------- -----
COMMON STOCK (cont'd)
CONSUMER NON-DURABLES (0.6%)
Borg-Warner Automotive, Inc. 3,100 $ 125,550
-----------
ENERGY (12.9%)
Amerada Hess Corp. 5,500 312,125
BP Amoco PLC ADR 11,200 664,300
Devon Energy Corp. 6,700 220,262
Exxon Mobil Corp. 7,400 596,162
Royal Dutch Petroleum Co. ADR 4,600 278,013
Total Fina SA ADR 5,700 394,725
Union Pacific Resources Group, Inc. 10,600 135,150
-----------
2,600,737
-----------
FINANCIAL SERVICES (13.1%)
American General Corporation 3,000 227,625
Associates First Capital Corp. Class A 8,800 241,450
Countrywide Credit Industries, Inc. 7,600 191,900
Fannie Mae 4,200 262,238
Household International, Inc. 6,000 223,500
Labranche & Co., Inc.(DAGGER) 5,800 73,950
Lehman Brothers Holdings, Inc. 6,150 520,828
MBIA, Inc. 2,800 147,875
MGIC Investment Corp. 3,500 210,656
PMI Group, Inc. 4,375 213,555
Terra Nova Bermuda Holdings, Ltd. Class A 6,800 204,000
XL Capital Ltd., Class A(DAGGER) 2,700 140,063
-----------
2,657,640
-----------
FOOD, BEVERAGES & TOBACCO (4.3%)
Anheuser-Busch Companies, Inc. 1,150 81,506
General Mills, Inc. 8,700 311,025
Hershey Foods Corp. 2,700 128,250
Keebler Foods Co.(DAGGER) 12,750 358,594
-----------
879,375
-----------
HEALTHCARE (3.2%)
Baxter International, Inc. 3,150 197,859
Becton, Dickinson & Co. 9,400 251,450
Trigon Healthcare, Inc.(DAGGER) 6,850 202,075
-----------
651,384
-----------
INDUSTRIAL MANUFACTURING & PROCESSING (4.6%)
Eaton Corp. 2,100 152,513
Johnson Controls, Inc. 2,900 164,938
Minnesota Mining & Manufacturing Co. 4,200 411,075
Tyco International Ltd. 5,000 194,375
-----------
922,901
-----------
See Accompanying Notes to Financial Statements.
29
<PAGE>
WARBURG PINCUS TRUST -- GROWTH & INCOME PORTFOLIO
SCHEDULE OF INVESTMENTS (CONT'D) -- DECEMBER 31, 1999
- --------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
-------- -----
COMMON STOCK (cont'd)
METALS & MINING (2.0%)
Alcoa, Inc. 4,764 $ 395,412
-----------
OFFICE EQUIPMENT & SUPPLIES (0.8%)
Pitney Bowes, Inc. 3,300 159,431
-----------
OIL SERVICES (1.8%)
Pride International, Inc.(DAGGER) 9,700 141,863
R & B Falcon Corp.(DAGGER) 17,400 230,550
-----------
372,413
-----------
PHARMACEUTICALS (4.1%)
American Home Products Corp. 3,300 130,144
Aventis SA ADR 3,950 224,656
Lilly (Eli) & Co. 5,000 332,500
Pharmacia & Upjohn, Inc. 3,100 139,500
-----------
826,800
-----------
RETAIL (9.4%)
Federated Department Stores, Inc.(DAGGER) 6,450 326,128
Gap, Inc. 1,800 82,800
May Department Stores Co. 12,600 406,350
Payless ShoeSource, Inc.(DAGGER) 1,928 90,616
Ross Stores, Inc. 16,900 303,144
Safeway, Inc.(DAGGER) 5,200 184,925
TJX Companies, Inc. 13,600 277,950
Toys `R' Us, Inc.(DAGGER) 16,700 239,019
-----------
1,910,932
-----------
TELECOMMUNICATIONS & EQUIPMENT (6.9%)
AT&T Corp. 6,100 309,575
Bell Atlantic Corp. 8,600 529,438
SBC Communications, Inc. 11,480 559,650
-----------
1,398,663
-----------
TRANSPORTATION (0.5%)
Burlington Northern Santa Fe Corp. 3,900 94,575
-----------
UTILITIES - ELECTRIC (1.8%)
Allegheny Energy, Inc. 5,550 149,503
American Electric Power Co., Inc. 2,700 86,738
Illinova Corp. 3,500 121,625
-----------
357,866
-----------
TOTAL COMMON STOCK (Cost $19,078,118) 19,815,424
-----------
See Accompanying Notes to Financial Statements.
30
<PAGE>
WARBURG PINCUS TRUST -- GROWTH & INCOME PORTFOLIO
SCHEDULE OF INVESTMENTS (CONT'D) -- DECEMBER 31, 1999
- --------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
-------- -----
PREFERRED STOCK (0.1%)
REAL ESTATE (0.1%)
Equity Residential Properties Series G 7.25% (Convertible)
(Callable 09/15/02 @ $25.91) REIT (Cost $20,254) 800 $ 15,800
-----------
SHORT TERM INVESTMENT (2.0%)
RBB Money Market Portfolio
(Cost $406,525) 406,525 406,525
-----------
TOTAL INVESTMENTS AT VALUE (100.0%) (Cost $19,504,897*) $20,237,749
===========
INVESTMENT ABBREVIATIONS
ADR = American Depository Receipt
- --------------------------------------------------------------------------------
(DAGGER) Non-income producing security.
* Cost for federal income tax purposes is $19,567,323.
See Accompanying Notes to Financial Statements.
31
<PAGE>
WARBURG PINCUS TRUST -- EMERGING MARKETS PORTFOLIO
SCHEDULE OF INVESTMENTS -- DECEMBER 31, 1999
- --------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
-------- -----
COMMON STOCKS (87.0%)
AUSTRALIA (1.4%)
Novus Petroleum, Ltd. 120,000 $ 114,318
Oil Search, Ltd. 84,300 110,770
-----------
225,088
-----------
BRAZIL (8.7%)
Companhia Brasileira de Distribuicao Grupo
Pao de Acucar ADR 12,140 392,274
Tele Norte Leste Participacoes SA ADR 19,200 489,600
Uniao de Bancos Brasileriros SA GDR 7,300 219,912
Telecomunicacoes Brasileiras SA ADR 2,600 334,100
-----------
1,435,886
-----------
CROATIA (1.6%)
Pliva DD GDR 19,730 262,618
-----------
CZECH REPUBLIC (0.7%)
Ceska Sporitelna AS(DAGGER) 26,300 120,390
-----------
EGYPT (2.0%)
Egyptian Company for Mobile Services 7,170 331,173
-----------
GREECE (1.8%)
Hellenic Telecommunication Organization SA ADR 24,900 297,244
-----------
HONG KONG (2.1%)
Global Tech Holdings, Ltd. 56,000 64,836
Guoco Group, Ltd. 76,000 231,710
SmarTone Telecommunications Holdings, Ltd. 11,700 56,442
-----------
352,988
-----------
HUNGARY (2.7%)
OTP Bank 7,600 444,734
-----------
INDIA (5.7%)
Icici, Ltd.(DAGGER) 21,500 298,312
State Bank of India, Ltd. GDR 13,400 163,480
Videsh Sanchar Nigam, Ltd. 19,700 484,620
-----------
946,412
-----------
INDONESIA (0.0%)
PT Indofood Sukses Makmur 6,500 8,139
-----------
ISRAEL (1.3%)
Blue Square Israel Co., Ltd. ADR 3,241 41,323
Orbotech, Ltd. 2,175 168,562
-----------
209,885
-----------
MALAYSIA (2.6%)
Commerce Asset Holdings BHD 61,000 156,511
Tenaga Nasional BHD 24,000 61,894
Unisem (M) BHD 34,000 218,313
-----------
436,718
-----------
See Accompanying Notes to Financial Statements.
32
<PAGE>
WARBURG PINCUS TRUST -- EMERGING MARKETS PORTFOLIO
SCHEDULE OF INVESTMENTS (CONT'D) -- DECEMBER 31, 1999
- --------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
-------- -----
COMMON STOCK (cont'd)
MEXICO (10.1%)
Alfa SA de CV Series A 65,600 $ 308,095
Carso Global Telecom SA(DAGGER) 6,387 59,589
Cemex SA de CV ADR(DAGGER) 5,570 155,264
Fomento Economico Mexicano SA de CV ADR(DAGGER) 7,220 321,290
Grupo Financiero Banorte SA de CV Class O(DAGGER) 77,300 115,685
Grupo Industrial Saltillo SA de CV 24,100 77,069
Grupo Iusacell SA ADR(DAGGER) 13,400 200,162
Grupo Sanborns SA Series B1(DAGGER) 67,100 144,469
Telefonos de Mexico SA ADR 2,540 285,750
-----------
1,667,373
-----------
PHILIPPINES (1.3%)
ABS-CBN Broadcasting Corp.(DAGGER) 174,900 216,997
-----------
POLAND (1.5%)
Bank Slaski SA 1,123 76,315
Elektrim Spolka Akcyjna SA 16,600 164,595
-----------
240,910
-----------
SINGAPORE (2.5%)
Neptune Orient Lines, Ltd.(DAGGER) 123,000 164,689
Overseas Union Bank, Ltd. 42,982 251,621
-----------
416,310
-----------
SOUTH AFRICA (9.8%)
ABSA Group, Ltd. 43,740 196,137
Billiton PLC 31,450 180,627
C.G. Smith, Ltd. 55,510 223,212
Dimension Data Holdings, Ltd.(DAGGER) 48,550 304,473
Sanlam, Ltd.(DAGGER) 243,040 339,585
Sappi, Ltd.(DAGGER) 22,938 226,585
South African Breweries PLC 14,800 150,525
-----------
1,621,144
-----------
SOUTH KOREA (16.0%)
Cheil Jedang Corp. 1,700 196,125
Communication Network Interface, Inc. 15,900 179,934
Daelim Industrial Co., Ltd. 18,057 207,524
Dream Line Corp.(DAGGER) 2,500 86,636
Haansoft, Inc.(DAGGER) 6,110 283,035
Hankuk Electric Glass Co., Ltd.(DAGGER) 7,260 306,896
Hite Brewery Co., Ltd.(DAGGER) 2,728 93,456
Housing & Commercial Bank, Korea 6,510 206,394
Hyundai Electronics Industries Co. 2,363 50,153
Samsung Electronics Co. 1,188 278,298
Shinhan Bank 24,800 268,639
SK Telecom Co., Ltd. 900 322,589
Telson Electronics Co., Ltd.(DAGGER) 2,250 43,989
Trigem Computer, Inc. 1,065 118,177
-----------
2,641,845
-----------
See Accompanying Notes to Financial Statements.
33
<PAGE>
WARBURG PINCUS TRUST -- EMERGING MARKETS PORTFOLIO
SCHEDULE OF INVESTMENTS (CONT'D) -- DECEMBER 31, 1999
- --------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
-------- -----
COMMON STOCK (cont'd)
TAIWAN (8.5%)
Ambit Microsystems Corp. 30,000 $ 222,718
Far Eastern Textile, Ltd. 94,450 225,705
Phoenixtec Power Co., Ltd.(DAGGER) 100,213 193,178
Taishin International Bank(DAGGER) 289,000 162,065
Taiwan Semiconductor Manufacturing Co.(DAGGER) 43,510 231,517
United Microelectronics Co., Ltd.(DAGGER) 102,900 367,207
-----------
1,402,390
-----------
THAILAND (1.3%)
Hana Microelectronics Public Co., Ltd.(DAGGER) 43,400 208,560
-----------
TURKEY (5.4%)
Akbank TAS 14,211,400 419,215
Yapi Ve Kredi Bankasi AS 15,139,480 467,526
-----------
886,741
-----------
TOTAL COMMON STOCKS (Cost $10,993,232) 14,373,545
-----------
PREFERRED STOCK (4.4%)
BRAZIL (4.2%)
Banco Itau SA 2,000,000 171,603
Companhia Vale do Rio Doce Class A 9,300 257,404
Petroleo Brasileiro SA 1,053,300 268,208
-----------
697,215
-----------
SOUTH KOREA (0.2%)
Daelim Industrial Co., Ltd. 4,960 30,577
-----------
TAIWAN (0.0%)
Taishin International Bank(DAGGER) 24,750 7,886
-----------
TOTAL PREFERRED STOCK (Cost $496,468) 735,678
-----------
SHORT TERM INVESTMENTS (8.6%)
Institutional Money Market Trust 616,473 616,473
RBB Money Market Portfolio 800,188 800,188
-----------
TOTAL SHORT TERM INVESTMENTS (Cost $1,416,661) 1,416,661
-----------
TOTAL INVESTMENTS AT VALUE (100.0%) (Cost $12,914,127*) $16,525,884
===========
INVESTMENT ABBREVIATIONS
ADR = American Depository Receipt
GDR = Global Depository Receipt
- --------------------------------------------------------------------------------
(DAGGER) Non-income producing security.
* Cost for federal income tax purposes is $12,926,848.
See Accompanying Notes to Financial Statements.
34
<PAGE>
WARBURG PINCUS TRUST -- EMERGING GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS -- DECEMBER 31, 1999
- --------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
-------- -----
COMMON STOCK (80.1%)
BUSINESS SERVICES (12.6%)
Agency.Com, Inc.(DAGGER) 3,100 $ 158,100
CB Richard Ellis Services, Inc.(DAGGER) 2,100 25,987
Concord EFS, Inc.(DAGGER) 2,000 51,500
Forrester Research, Inc. 800 55,100
Freemarkets, Inc.(DAGGER) 300 102,394
Metamor Worldwide, Inc. 1,800 52,425
NOVA Corp. 1,900 59,969
On Assignment, Inc.(DAGGER) 1,600 47,800
OnDisplay, Inc.(DAGGER) 500 45,437
QRS Corp.(DAGGER) 600 62,587
Robert Half International, Inc.(DAGGER) 1,700 48,556
Sitel Corp.(DAGGER) 6,200 43,400
TMP Worldwide, Inc. 400 56,800
----------
810,055
----------
COMMUNICATIONS & MEDIA (10.0%)
Ackerley Group, Inc. 3,000 54,375
Backweb Technologies, Ltd. 1,700 71,612
EarthLink Network, Inc. 1,200 51,000
Globix Corp. 1,400 84,000
InfoSpace.com, Inc.(DAGGER) 300 64,200
InterWorld Corp.(DAGGER) 700 59,762
Lamar Advertising Co.(DAGGER) 800 48,450
Liquid Audio, Inc.(DAGGER) 1,600 42,000
Paxson Communications Corp.(DAGGER) 5,000 59,687
Tritel, Inc.(DAGGER) 1,400 44,363
Verio, Inc.(DAGGER) 1,300 60,044
----------
639,493
----------
COMPUTERS (12.7%)
Adaptec, Inc.(DAGGER) 1,000 49,875
Citrix Systems, Inc.(DAGGER) 800 98,400
Computer Network Technology Corp.(DAGGER) 2,000 45,875
Edwards (J.D.) & Co.(DAGGER) 1,700 50,787
Interwoven, Inc.(DAGGER) 400 48,650
Intraware, Inc.(DAGGER) 1,100 86,900
Mercury Interactive Corp.(DAGGER) 600 64,762
National Instruments Corp.(DAGGER) 1,800 68,850
Peregrine Systems, Inc.(DAGGER) 700 57,837
Safeguard Scientifics, Inc.(DAGGER) 400 64,825
Saga Systems, Inc. 2,400 47,850
SilverStream Software, Inc.(DAGGER) 300 35,700
TSI International Software, Ltd.(DAGGER) 900 50,962
Wind River Systems, Inc. 1,300 47,775
----------
819,048
----------
See Accompanying Notes to Financial Statements.
35
<PAGE>
WARBURG PINCUS TRUST -- EMERGING GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS (CONT'D) -- DECEMBER 31, 1999
- --------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
-------- -----
COMMON STOCK (CONT'D)
CONSUMER NON-DURABLES (1.6%)
Mohawk Industries, Inc.(DAGGER) 2,000 $ 52,750
Pennzoil-Quaker State Co. 5,200 52,975
----------
105,725
----------
CONSUMER SERVICES (1.6%)
DeVry, Inc.(DAGGER) 2,600 48,425
ITT Educational Services, Inc.(DAGGER) 3,500 54,031
----------
102,456
----------
ELECTRONICS (8.6%)
Asyst Technologies, Inc.(DAGGER) 1,000 65,562
Burr-Brown Corp.(DAGGER) 1,500 54,187
California Micro Devices Corp.(DAGGER) 6,000 70,500
Cognex Corp.(DAGGER) 1,400 54,600
Electroglas, Inc.(DAGGER) 2,000 50,750
Maxim Integrated Products, Inc.(DAGGER) 1,600 75,500
Semtech Corp. 1,300 67,763
Varian Semiconductor Equipment Associates, Inc.(DAGGER) 1,700 57,800
Vishay Intertechnology, Inc.(DAGGER) 1,700 53,763
----------
550,425
----------
FINANCIAL SERVICES (4.0%)
AMBAC Financial Group, Inc. 1,000 52,188
Enhance Financial Services Group, Inc. 2,700 43,875
IndyMac Mortgage Holdings, Inc. 4,400 56,100
Legg Mason, Inc. 1,400 50,750
Reinsurance Group of America, Inc. 2,000 55,500
----------
258,413
----------
HEALTHCARE (3.2%)
Caremark Rx, Inc.(DAGGER) 11,000 55,688
First Health Group Corp.(DAGGER) 1,900 51,063
Health Management Associates, Inc. Class A(DAGGER) 3,300 44,138
IVAX Corp.(DAGGER) 2,200 56,650
----------
207,539
----------
LEISURE & ENTERTAINMENT (0.8%)
Sunterra Corp.(DAGGER) 4,600 52,900
----------
LODGING & RESTAURANTS (0.7%)
Extended Stay America, Inc.(DAGGER) 6,300 48,038
----------
OFFICE EQUIPMENT & SUPPLIES (0.7%)
Herman Miller, Inc. 2,100 48,300
----------
See Accompanying Notes to Financial Statements.
36
<PAGE>
WARBURG PINCUS TRUST -- EMERGING GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS (CONT'D) -- DECEMBER 31, 1999
- --------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
-------- -----
COMMON STOCK (CONT'D)
OIL SERVICES (3.7%)
BJ Services Co.(DAGGER) 1,200 $ 50,175
Cooper Cameron Corp.(DAGGER) 1,300 63,619
Nabors Industries, Inc.(DAGGER) 2,100 64,969
Pride International, Inc.(DAGGER) 4,000 58,500
----------
237,263
----------
PHARMACEUTICALS (1.1%)
Anesta Corp. 3,200 55,000
Biovail Corp. International(DAGGER) 200 18,750
----------
73,750
----------
RETAIL (2.4%)
BJ's Wholesale Club, Inc.(DAGGER) 1,200 43,800
Ethan Allen Interiors, Inc. 1,800 57,713
Saks, Inc.(DAGGER) 3,200 49,800
----------
151,313
----------
TELECOMMUNICATIONS & EQUIPMENT (15.6%)
Advanced Fibre Communications, Inc.(DAGGER) 1,200 53,625
ANTEC Corp.(DAGGER) 2,500 91,250
Aspect Communications Corp.(DAGGER) 1,400 54,775
Cabletron Systems, Inc.(DAGGER) 2,200 57,200
CoreComm Ltd.(DAGGER) 1,200 71,250
Intermedia Communications of Florida, Inc.(DAGGER) 1,900 73,744
ITC DeltaCom, Inc.(DAGGER) 1,800 49,725
McLeodUSA, Inc. Class A(DAGGER) 1,100 64,763
MRV Communications, Inc.(DAGGER) 1,000 62,875
PairGain Technologies, Inc.(DAGGER) 3,800 53,913
Polycom, Inc. 1,100 70,056
Scientific-Atlanta, Inc. 1,000 55,625
Symbol Technologies, Inc. 900 57,206
Tekelec(DAGGER) 2,400 54,000
TTI Team Telecom International, Ltd.(DAGGER) 2,700 48,938
Western Wireless Corp. Class A(DAGGER) 1,200 80,100
----------
999,045
----------
UTILITIES - ELECTRIC (0.8%)
SCANA Corp. 1,800 48,375
----------
TOTAL COMMON STOCK (Cost $4,225,125) 5,152,138
----------
SHORT TERM INVESTMENTS (19.9%)
Institutional Money Market Trust 957,540 957,540
RBB Money Market Portfolio 319,180 319,180
----------
TOTAL SHORT TERM INVESTMENTS (Cost $1,276,720) 1,276,720
----------
TOTAL INVESTMENTS AT VALUE (100.0%) (Cost $5,501,845*) $6,428,858
==========
- --------------------------------------------------------------------------------
(DAGGER) Non-income producing security.
* Cost for federal income tax purposes is $5,503,387.
See Accompanying Notes to Financial Statements.
37
<PAGE>
WARBURG PINCUS TRUST
STATEMENTS OF ASSETS AND LIABILITIES
For the Period Ended December 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERNATIONAL SMALL COMPANY POST-VENTURE GROWTH &
EQUITY PORTFOLIO GROWTH PORTFOLIO CAPITAL PORTFOLIO INCOME PORTFOLIO
---------------- ---------------- ----------------- ----------------
<S> <C> <C> <C> <C>
ASSETS
Investments, at value (Cost - $424,136,027,
$800,825,719, $94,266,141, $19,504,897,
$12,914,127 and $5,501,845, respectively) $606,522,263 $1,279,837,574 $153,079,645 $20,237,749
Foreign currency (Cost-- $1,340,315,$0,$208,
$7, $194,151 and $0, respectively) 1,314,710 0 208 7
Cash 0 0 0 0
Receivable for investments sold 2,097,385 0 0 0
Receivable for fund shares sold 3,256,494 356,553 242,364 92
Receivable from investment adviser 0 0 0 0
Dividends, interest and reclaim receivable 794,522 239,230 91,005 21,638
Prepaid expenses and other assets 6,107 11,319 161 161
------------ -------------- ------------ -----------
Total Assets 613,991,481 1,280,444,676 153,413,383 20,259,647
------------ -------------- ------------ -----------
LIABILITIES
Payable for investments purchases 2,697,023 795,414 0 0
Payable for fund shares redeemed 57,956 5,942,411 1,447,396 74,165
Deferred capital gains taxes 0 0 0 0
Advisory fee payable 470,781 869,260 128,505 7,457
Administrative services payable 47,066 96,584 11,638 1,775
Accrued expenses payable 171,269 199,420 42,234 23,018
------------ -------------- ------------ -----------
Total Liabilities 3,444,095 7,903,089 1,629,773 106,415
------------ -------------- ------------ -----------
NET ASSETS
Capital contributed, net 411,359,552 712,060,495 96,270,664 19,252,451
Undistributed net investment income 0 0 0 0
Accumulated net realized gain (loss)
from security transactions 16,864,339 81,469,240 (3,300,543) 167,929
Net unrealized appreciation from investments
and foreign currency related items 182,323,495 479,011,852 58,813,489 732,852
------------ -------------- ------------ -----------
Net assets $610,547,386 $1,272,541,587 $151,783,610 $20,153,232
============ ============== ============ ===========
NET ASSET VALUE
Net assets $610,547,386 $1,272,541,587 $151,783,610 $20,153,232
------------ -------------- ------------ -----------
Shares outstanding 36,568,580 48,561,734 7,879,956 1,695,236
------------ -------------- ------------ -----------
Net asset value, offering price and
redemption price per share $16.70 $26.20 $19.26 $11.89
====== ====== ====== ======
</TABLE>
<TABLE>
<CAPTION>
EMERGING EMERGING
MARKETS PORTFOLIO GROWTH PORTFOLIO
----------------- ----------------
<S> <C> <C>
ASSETS
Investments, at value (Cost - $424,136,027,
$800,825,719, $94,266,141, $19,504,897,
$12,914,127 and $5,501,845, respectively) $16,525,884 $6,428,858
Foreign currency (Cost-- $1,340,315,$0,$208,
$7, $194,151 and $0, respectively) 195,494 0
Cash 780 232,128
Receivable for investments sold 0 0
Receivable for fund shares sold 85,596 98,709
Receivable from investment adviser 17,463 23,389
Dividends, interest and reclaim receivable 24,157 3,641
Prepaid expenses and other assets 0 0
----------- ----------
Total Assets 16,849,374 6,786,725
----------- ----------
LIABILITIES
Payable for investments purchases 10,218 110,761
Payable for fund shares redeemed 4,099 15
Deferred capital gains taxes 20,534 0
Advisory fee payable 0 0
Administrative services payable 1,218 383
Accrued expenses payable 32,536 51,334
----------- ----------
Total Liabilities 68,605 162,493
----------- ----------
NET ASSETS
Capital contributed, net 12,631,994 5,653,415
Undistributed net investment income 39,828 0
Accumulated net realized gain (loss)
from security transactions 516,597 43,804
Net unrealized appreciation from investments
and foreign currency related items 3,592,350 927,013
----------- ----------
Net assets $16,780,769 $6,624,232
=========== ==========
NET ASSET VALUE
Net assets $16,780,769 $6,624,232
----------- ----------
Shares outstanding 1,183,343 506,858
----------- ----------
Net asset value, offering price and
redemption price per share $14.18 $13.07
====== ======
</TABLE>
See Accompanying Notes to Financial Statements.
38 & 39
<PAGE>
WARBURG PINCUS TRUST
STATEMENTS OF OPERATIONS
For the Period Ended December 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERNATIONAL SMALL COMPANY POST-VENTURE GROWTH &
EQUITY PORTFOLIO GROWTH PORTFOLIO CAPITAL PORTFOLIO INCOME PORTFOLIO
---------------- ---------------- ----------------- -----------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends $ 7,130,547 $ 435,749 $ 73,045 $265,386
Interest 1,463,434 2,807,032 331,021 109,234
Foreign taxes withheld (723,933) 0 (3,040) (4,326)
------------ ------------ ------------- --------
Total investment income 7,870,048 3,242,781 401,026 370,294
------------ ------------ ------------- --------
EXPENSES:
Investment advisory 4,048,114 6,954,618 952,963 145,134
Administrative services 877,144 1,481,108 157,899 51,707
Custodian/Sub-custodian 232,020 152,878 23,256 34,720
Trustees 3,054 4,265 2,516 2,465
Interest 3,304 7,192 3,802 217
Insurance 4,477 6,707 1,565 773
Legal 51,973 86,628 9,517 2,603
Offering/Organizational costs 12,443 20,165 0 0
Printing 59,917 91,215 25,559 1,318
Transfer agent 46,355 86,107 19,485 10,157
Audit 25,186 28,000 12,089 10,100
Miscellaneous 14,808 12,404 2,732 1,649
------------ ------------ ------------- --------
5,378,795 8,931,287 1,211,383 260,843
Less: fees waived, expenses reimbursed
and transfer agent fee offsets (48,166) (93,504) (144,065) (67,331)
------------ ------------ ------------- --------
Total expenses 5,330,629 8,837,783 1,067,318 193,512
------------ ------------ ------------- --------
Net investment income (loss) 2,539,419 (5,595,002) (666,292) 176,782
------------ ------------ ------------- --------
NET REALIZED AND UNREALIZED GAIN FROM
INVESTMENTS AND FOREIGN CURRENCY RELATED
ITEMS:
Net realized gain from security and other
related transactions (net of capital
gains taxes of $168,019 and $43,073 for the
International Equity and Emerging Markets
Portfolios, respectively) 62,881,924 163,829,479 2,501,445 971,966
Net realized loss from foreign currency related
items (354,676) 0 (655) (285)
Net realized foreign forward currency losses (5,044,443) 0 0 0
Net change in unrealized appreciation
(depreciation) from investments and foreign
currency related items (net of estimated
deferred capital gains taxes of $20,534 for
the Emerging Markets Portfolio) 149,553,409 339,691,475 46,728,153 (475,962)
------------ ------------ ------------- --------
Net realized and unrealized gain from
investments and foreign currency related
items 207,036,214 503,520,954 49,228,943 495,719
------------ ------------ ------------- --------
Net increase in net assets resulting from
operations $209,575,633 $497,925,952 $48,562,651 $672,501
============ ============ ============= ========
</TABLE>
<TABLE>
<CAPTION>
EMERGING EMERGING
MARKETS PORTFOLIO GROWTH PORTFOLIO*
----------------- -----------------
<S> <C> <C>
INVESTMENT INCOME:
Dividends $ 86,965 $ 1,330
Interest 39,639 6,737
Foreign taxes withheld (7,827) 0
---------- --------
Total investment income 118,777 8,067
---------- --------
EXPENSES:
Investment advisory 77,967 5,760
Administrative services 23,370 1,668
Custodian/Sub-custodian 9,573 8,774
Trustees 2,400 265
Interest 0 10
Insurance 432 0
Legal 864 525
Offering/Organizational costs 36,482 35,000
Printing 25,500 10,500
Transfer agent 8,303 101
Audit 10,119 8,074
Miscellaneous 1,098 780
---------- --------
196,108 71,457
Less: fees waived, expenses reimbursed
and transfer agent fee offsets (108,785) (63,456)
---------- --------
Total expenses 87,323 8,001
---------- --------
Net investment income (loss) 31,454 66
---------- --------
NET REALIZED AND UNREALIZED GAIN FROM
INVESTMENTS AND FOREIGN CURRENCY RELATED
ITEMS:
Net realized gain from security and other
related transactions (net of capital
gains taxes of $168,019 and $43,073 for the
International Equity and Emerging Markets
Portfolios, respectively) 1,358,967 44,291
Net realized loss from foreign currency related
items (46,218) 0
Net realized foreign forward currency losses 0 0
Net change in unrealized appreciation
(depreciation) from investments and foreign
currency related items (net of estimated
deferred capital gains taxes of $20,534 for
the Emerging Markets Portfolio) 3,519,465 927,013
---------- --------
Net realized and unrealized gain from
investments and foreign currency related
items 4,832,214 971,304
---------- --------
Net increase in net assets resulting from
operations $4,863,668 $971,370
========== ========
</TABLE>
* Inception date September 13, 1999.
See Accompanying Notes to Financial Statements.
40 & 41
<PAGE>
WARBURG PINCUS TRUST
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
POST-VENTURE
INTERNATIONAL EQUITY PORTFOLIO SMALL COMPANY GROWTH PORTFOLIO CAPITAL PORTFOLIO
------------------------------ ------------------------------ ----------------------------
FOR THE FOR THE FOR THE FOR THE FOR THE FOR THE
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1999 1998 1999 1998 1999 1998
--------------- ------------- -------------- ------------- ------------- ------------
<S> <C> <C> <C> <C> <C> <C>
FROM OPERATIONS:
Net investment income (loss) $ 2,539,419 $ 2,508,512 $ (5,595,002) $ (3,446,956) $ (666,292) $ (377,268)
Net realized gain (loss)
from security and other
related transactions (net of
capital gains taxes of $168,019
and $43,073 for the International
Equity and Emerging Markets
Portfolios, respectively) 62,881,924 (13,570,730) 163,829,479 (24,310,017) 2,501,445 (5,574,888)
Net realized gain (loss) from
foreign currency related items (354,676) 203,842 0 0 (655) 0
Net realized foreign forward
currency gain (loss) (5,044,443) 4,090,053 0 0 0 0
Net change in unrealized
appreciation (depreciation)
from investments and foreign
currency related items (net of
estimated deferred capital gains
taxes of $20,534 for the Emerging
Markets Portfolio) 149,553,409 27,818,000 339,691,475 12,266,488 46,728,153 8,660,364
--------------- ------------- -------------- ------------- ------------- ------------
Net increase (decrease) in net
assets resulting from operations 209,575,633 21,049,677 497,925,952 (15,490,485) 48,562,651 2,708,208
--------------- ------------- -------------- ------------- ------------- ------------
FROM DIVIDENDS AND DISTRIBUTIONS:
Dividends from net investment income (2,649,195) (1,737,856) 0 0 0 0
Dividends in excess of net
investment income (2,482,363) 0 0 0 0 0
Return of Capital 0 0 0 0 0 0
Distributions from net realized gains 0 (203,842) (35,522,021) 0 0 0
--------------- ------------- -------------- ------------- ------------- ------------
Net decrease in net assets
from dividends and distributions (5,131,558) (1,941,698) (35,522,021) 0 0 0
--------------- ------------- -------------- ------------- ------------- ------------
FROM CAPITAL SHARE TRANSACTIONS:
Proceeds from sale of shares 1,305,822,809 560,600,065 283,714,477 356,119,068 150,704,290 82,888,701
Reinvested dividends and distributions 5,130,825 1,941,380 35,522,021 0 0 0
Net asset value of shares redeemed (1,264,974,781) (568,753,948) (244,001,007) (272,120,075) (109,538,405) (54,062,024)
--------------- ------------- -------------- ------------- ------------- ------------
Net increase (decrease) in net
assets from capital share
transactions 45,978,853 (6,212,503) 75,235,491 83,998,993 41,165,885 28,826,677
--------------- ------------- -------------- ------------- ------------- ------------
Net increase in net assets 250,422,928 12,895,476 537,639,422 68,508,508 89,728,536 31,534,885
NET ASSETS:
Beginning of period 360,124,458 347,228,982 734,902,165 666,393,657 62,055,074 30,520,189
--------------- ------------- -------------- ------------- ------------- ------------
End of Period $ 610,547,386 $ 360,124,458 $1,272,541,587 $ 734,902,165 $ 151,783,610 $ 62,055,074
=============== ============= ============== ============= ============= ============
</TABLE>
<TABLE>
<CAPTION>
GROWTH & INCOME EMERGING MARKETS EMERGING GROWTH
PORTFOLIO PORTFOLIO PORTFOLIO
---------------------------- ---------------------------- -------------------
FOR THE PERIOD
FOR THE FOR THE FOR THE FOR THE SEPTEMBER 13, 1999
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED (COMMENCEMENT OF
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, OPERATIONS) THROUGH
1999 1998 1999 1998 DECEMBER 31, 1999
------------ ------------ ------------ ------------ -------------------
<S> <C> <C> <C> <C> <C>
FROM OPERATIONS:
Net investment income (loss) $ 176,782 $ 87,349 $ 31,454 $ 29,497 $ 66
Net realized gain (loss)
from security and other
related transactions (net of
capital gains taxes of $168,019
and $43,073 for the International
Equity and Emerging Markets
Portfolios, respectively) 971,966 (454,057) 1,358,967 (248,533) 44,291
Net realized gain (loss) from
foreign currency related items (285) (61) (46,218) (7,185) 0
Net realized foreign forward
currency gain (loss) 0 0 0 0 0
Net change in unrealized
appreciation (depreciation)
from investments and foreign
currency related items (net of
estimated deferred capital gains
taxes of $20,534 for the Emerging
Markets Portfolio) (475,962) 1,140,836 3,519,465 72,885 927,013
----------- ----------- ----------- ---------- ----------
Net increase (decrease) in net
assets resulting from operations 672,501 774,067 4,863,668 (153,336) 971,370
----------- ----------- ----------- ---------- ----------
FROM DIVIDENDS AND DISTRIBUTIONS:
Dividends from net investment income (188,412) (116,510) (38,222) (22,312) (35,553)
Dividends in excess of net
investment income 0 0 0 0 0
Return of Capital 0 0 0 (494) 0
Distributions from net realized gains (339,280) 0 (575,706) 0 0
----------- ----------- ----------- ---------- ----------
Net decrease in net assets
from dividends and distributions (527,692) (116,510) (613,928) (22,806) (35,553)
----------- ----------- ----------- ---------- ----------
FROM CAPITAL SHARE TRANSACTIONS:
Proceeds from sale of shares 12,034,989 14,068,832 12,160,959 2,979,651 5,704,415
Reinvested dividends and distributions 526,754 115,563 612,463 15,065 35,553
Net asset value of shares redeemed (6,934,089) (2,454,324) (2,938,165) (123,902) (51,553)
----------- ----------- ----------- ---------- ----------
Net increase (decrease) in net
assets from capital share
transactions 5,627,654 11,730,071 9,835,257 2,870,814 5,688,415
----------- ----------- ----------- ---------- ----------
Net increase in net assets 5,772,463 12,387,628 14,084,997 2,694,672 6,624,232
NET ASSETS:
Beginning of period 14,380,769 1,993,141 2,695,772 1,100 0
----------- ----------- ----------- ---------- ----------
End of Period $20,153,232 $14,380,769 $16,780,769 $2,695,772 $6,624,232
=========== =========== =========== ========== ==========
</TABLE>
See Accompanying Notes to Financial Statements.
42 & 43
<PAGE>
WARBURG PINCUS TRUST -- INTERNATIONAL EQUITY PORTFOLIO
FINANCIAL HIGHLIGHTS
(For a Share of the Portfolio Outstanding Throughout Each Period)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE YEAR ENDED DECEMBER 31,
-----------------------------------------------------------
PERIOD ENDED: 1999 1998 1997 1996 1995 1
-------- -------- -------- -------- -------
<S> <C> <C> <C> <C> <C>
PER SHARE DATA
Net asset value, beginning of period $ 10.99 $ 10.49 $ 11.48 $ 10.65 $ 10.00
-------- -------- -------- -------- -------
INVESTMENT ACTIVITIES:
Net investment income 0.08 0.08 0.10 0.00 0.03
Net gains (losses) on investments and
foreign currency related items (both
realized and unrealized) 5.78 0.48 (0.37) 1.06 0.70
-------- -------- -------- -------- -------
Total from investment activities 5.86 0.56 (0.27) 1.06 0.73
-------- -------- -------- -------- -------
LESS DIVIDENDS AND DISTRIBUTIONS:
Dividends from net investment income (0.08) (0.05) (0.01) (0.06) (0.01)
Dividends in excess of net investment income (0.07) 0.00 0.00 (0.10) (0.07)
Distributions from net realized gains 0.00 (0.01) 0.00 (0.06) 0.00
Distributions in excess of net realized gains 0.00 0.00 (0.71) (0.01) 0.00
-------- -------- -------- -------- -------
TOTAL DIVIDENDS AND DISTRIBUTIONS (0.15) (0.06) (0.72) (0.23) (0.08)
-------- -------- -------- -------- -------
NET ASSET VALUE, END OF PERIOD $ 16.70 $ 10.99 $ 10.49 $ 11.48 $ 10.65
======== ======== ======== ======== =======
Total return 53.43% 5.35% (2.26)% 9.98% 7.30% 2
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period (000s omitted) $610,547 $360,124 $347,229 $298,218 $64,537
Ratio of expenses to average net assets 1.33% 4 1.33% 4 1.36% 4 1.36% 4 1.44% 3
Ratio of net income to average net assets .63% .68% .66% .64% .48% 3
Decrease reflected in above operating
expense ratios due to waivers/
reimbursements .00% .00% .00% .04% .77% 3
Portfolio turnover rate 144.67% 105.28% 78.65% 30.82% 8.31% 2
</TABLE>
- --------------------------------------------------------------------------------
1 For the period June 30, 1995 (commencement of operations) through December
31, 1995.
2 Non-annualized
3 Annualized.
4 Interest earned on uninvested cash balances is used to offset portions of
the transfer agent expense. These arrangements resulted in a reduction to
the Portfolio's net expense ratio by .01%, .00%, .01% and .00% for the
years ended December 31, 1999, 1998, 1997 and 1996, respectively. The
Portfolio's operating expense ratio after reflecting these arrangements was
1.32%, 1.33%, 1.35% and 1.36% for the years ended December 31, 1999, 1998,
1997 and 1996, respectively.
See Accompanying Notes to Financial Statements.
44
<PAGE>
WARBURG PINCUS TRUST -- SMALL COMPANY GROWTH PORTFOLIO
FINANCIAL HIGHLIGHTS
(For a Share of the Portfolio Outstanding Throughout Each Period)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE YEAR ENDED DECEMBER 31,
------------------------------------------------------------
PERIOD ENDED: 1999 1998 1997 1996 1995 1
--------- -------- -------- -------- -------
<S> <C> <C> <C> <C> <C>
Per share data
Net asset value, beginning of period $ 16.01 $ 16.48 $ 14.25 $ 12.51 $ 10.00
--------- -------- -------- -------- -------
INVESTMENT ACTIVITIES:
Net investment loss (0.12) (0.06) (0.07) (0.06) (0.01)
Net gains (losses) on investments
and foreign currency related items
(both realized and unrealized) 11.07 (0.41) 2.30 1.80 2.52
--------- -------- -------- -------- -------
Total from investment activities 10.95 (0.47) 2.23 1.74 2.51
--------- -------- -------- -------- -------
LESS DISTRIBUTIONS:
Distributions from net realized gains (0.76) 0.00 0.00 0.00 0.00
--------- -------- -------- -------- -------
NET ASSET VALUE, END OF PERIOD $ 26.20 $ 16.01 $ 16.48 $ 14.25 $ 12.51
======== ======== ======== ======== =======
Total return 69.08% (2.85)% 15.65% 13.91% 25.10% 2
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period (000s omitted) $1,272,542 $734,902 $666,394 $339,398 $97,445
Ratio of expenses to average net assets 1.15% 4 1.14% 4 1.15% 4 1.16% 4 1.25% 3
Ratio of net loss to average net assets (.72)% (.51)% (.56)% (.66)% (.36)% 3
Decrease reflected in above operating
expense ratios due to waivers/
reimbursements .00% .00% .00% .01% .25% 3
Portfolio turnover rate 121.97% 65.61% 92.45% 101.50% 34.25% 2
</TABLE>
- --------------------------------------------------------------------------------
1 For the period June 30, 1995 (commencement of operations) through December
31, 1995.
2 Non-annualized
3 Annualized.
4 Interest earned on uninvested cash balances is used to offset portions of
the transfer agent expenses. These arrangements resulted in a reduction to
the Portfolio's net expense ratio by .01%, .00%, .01% and .00% for the
years ended December 31, 1999, 1998, 1997 and 1996, respectively. The
Portfolio's operating expense ratio after reflecting these arrangements was
1.14%, 1.14%, 1.14% and 1.16% for the years ended December 31, 1999, 1998,
1997 and 1996, respectively.
See Accompanying Notes to Financial Statements.
45
<PAGE>
WARBURG PINCUS TRUST -- POST-VENTURE CAPITAL PORTFOLIO
FINANCIAL HIGHLIGHTS
(For a Share of the Portfolio Outstanding Throughout Each Period)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE YEAR ENDED DECEMBER 31,
--------------------------------------------
PERIOD ENDED: 1999 1998 1997 1996 1
-------- ------- ------- -------
<S> <C> <C> <C> <C>
PER SHARE DATA
Net asset value, beginning of period $ 11.82 $ 11.06 $ 9.76 $ 10.00
-------- ------- ------- -------
INVESTMENT ACTIVITIES:
Net investment loss (0.08) (0.04) (0.08) 0.00
Net gains (losses) on investments
and foreign currency related items
(both realized and unrealized) 7.52 0.80 1.38 (0.24)
-------- ------- ------- -------
Total from investment activities 7.44 0.76 1.30 (0.24)
-------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD $ 19.26 $ 11.82 $ 11.06 $ 9.76
======== ======= ======= =======
Total return 62.94% 6.87% 13.34% (2.40)%2
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period (000s omitted) $151,784 $62,055 $30,520 $12,400
Ratio of expenses to average net assets 1.41% 4 1.40% 4 1.40% 4 1.41% 3,4
Ratio of net income (loss) to average
net assets (.87)% (.83)% (.75)% .80% 3
Decrease reflected in above operating
expense ratios due to waivers/
reimbursements .18% .30% .18% 4.16% 3
Portfolio turnover rate 44.38% 73.18% 238.12% 6.80% 2
</TABLE>
- --------------------------------------------------------------------------------
1 For the period September 30, 1996 (commencement of operations) through
December 31, 1996.
2 Non-annualized
3 Annualized.
4 Interest earned on uninvested cash balances is used to offset portions of
the transfer agent expenses. These arrangements resulted in a reduction to
the Portfolio's net expense ratio by .01%, .00%, .00% and .01% for the year
or period ended December 31, 1999, 1998, 1997 and 1996, respectively. The
Portfolio's operating expense ratio after reflecting these arrangements was
1.40% for each year or period ended December 31, 1999, 1998, 1997 and 1996,
respectively.
See Accompanying Notes to Financial Statements.
46
<PAGE>
WARBURG PINCUS TRUST -- GROWTH & INCOME PORTFOLIO
FINANCIAL HIGHLIGHTS
(For a Share of the Portfolio Outstanding Throughout Each Period)
- --------------------------------------------------------------------------------
FOR THE YEAR ENDED DECEMBER 31,
-------------------------------
PERIOD ENDED: 1999 1998 1997 1
------- ------- -------
PER SHARE DATA
Net asset value, beginning of period $ 11.48 $ 10.33 $ 10.00
------- ------- -------
INVESTMENT ACTIVITIES:
Net investment income 0.33 0.09 0.04
Net gains on investments and foreign
currency related items (both realized
and unrealized) 0.38 1.16 0.35
------- ------- -------
Total from investment activities 0.71 1.25 0.39
------- ------- -------
LESS DIVIDENDS AND DISTRIBUTIONS:
Dividends from net investment income (0.11) (0.10) (0.03)
Return of capital 0.00 0.00 (0.03)
Distributions from net realized gains (0.19) 0.00 0.00
------- ------- -------
Total dividends and distributions (0.30) (0.10) (0.06)
------- ------- -------
NET ASSET VALUE, END OF PERIOD $ 11.89 $ 11.48 $ 10.33
======= ======= =======
Total return 6.24% 12.13% 3.89% 2
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period (000s omitted) $20,153 $14,381 $ 1,993
Ratio of expenses to average net assets 1.01% 4 1.00% 4 1.00% 3,4
Ratio of net income to average net assets .91% 1.11% 2.08% 3
Decrease reflected in above operating
expense ratios due to waivers/
reimbursements .34% 1.22% 9.37% 3
Portfolio turnover rate 102.13% 57.93% 64.38% 2
- --------------------------------------------------------------------------------
1 For the period October 31, 1997 (commencement of operations) through
December 31, 1997.
2 Non-annualized.
3 Annualized.
4 Interest earned on uninvested cash balances is used to offset portions of
the transfer agent expense. These arrangements resulted in a reduction to
the Portfolio's net expense ratio by .01%, .00% and .00% for the year or
period ended December 31, 1999, 1998 and 1997, respectively. The
Portfolio's operating expense ratio after reflecting these arrangements was
1.00% for each year or period ended December 31, 1999, 1998 and 1997.
See Accompanying Notes to Financial Statements.
47
<PAGE>
WARBURG PINCUS TRUST -- EMERGING MARKETS PORTFOLIO
FINANCIAL HIGHLIGHTS
(For a Share of the Portfolio Outstanding Throughout Each Year)
- --------------------------------------------------------------------------------
FOR THE YEAR ENDED
DECEMBER 31,
------------------------
YEAR ENDED: 1999 1998
------- -------
PER SHARE DATA
Net asset value, beginning of year $ 8.19 $ 10.00
------- -------
INVESTMENT ACTIVITIES:
Net investment income 0.05(a) 0.10
Net gains (losses) on investments and
foreign currency related items
(both realized and unrealized) 6.56 (1.83)
------- -------
Total from investment activities 6.61 (1.73)
------- -------
LESS DIVIDENDS AND DISTRIBUTIONS:
Dividends from net investment income (0.04) (0.08)
Distributions from net realized capital gains (0.58) 0.00
------- -------
Total Dividends and Distributions (0.62) (0.08)
------- -------
NET ASSET VALUE, END OF YEAR $ 14.18 $ 8.19
======= =======
Total return 81.40% (17.30)%
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of year (000s omitted) $16,781 $ 2,696
Ratio of expenses to average net assets 1.42% 1 1.40% 1
Ratio of net income (loss) to average
net assets (.19)% 2.09%
Decrease reflected in above operating
expense ratios due to waivers/reimbursements 1.73% 6.81%
Portfolio turnover rate 145.38% 21.29%
- --------------------------------------------------------------------------------
(a) Per share information is calculated using the average shares outstanding
method.
1 Interest earned on uninvested cash balances is used to offset portions of
the transfer agent expense. These arrangements resulted in a reduction to
the Portfolio's net expense ratio by .02% and .00% for the years ended
December 31, 1999 and 1998, respectively. The Portfolio's operating expense
ratio after reflecting these arrangements has 1.40% for the years ended
December 31, 1999 and 1998.
See Accompanying Notes to Financial Statements.
48
<PAGE>
WARBURG PINCUS TRUST -- EMERGING GROWTH PORTFOLIO
FINANCIAL HIGHLIGHTS
(For a Share of the Portfolio Outstanding Throughout the Period)
- --------------------------------------------------------------------------------
FOR THE PERIOD
SEPTEMBER 13, 1999
(COMMENCEMENT OF
OPERATIONS) THROUGH
DECEMBER 31, 1999
-------------------
PER SHARE DATA
Net asset value, beginning of year $10.00
------
INVESTMENT ACTIVITIES:
Net investment income 0.04
Net unrealized and realized gain (loss) on securities 3.14
------
Total from investment activities 3.18
------
LESS DIVIDENDS:
Dividends from net investment income (0.11)
------
NET ASSET VALUE, END OF PERIOD $13.07
======
Total return 31.95% 1
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period (000s omitted) $6,624
Ratio of expenses to average net assets 1.25% 2,3
Ratio of net income to average net assets .01% 2
Decrease reflected in above operating expense
ratios due to waivers/reimbursements. 9.91% 2
Portfolio turnover rate 31.21% 1
- --------------------------------------------------------------------------------
1 Non-annualized.
2 Annualized.
3 Interest earned on uninvested cash balances is used to offset portions of
the transfer agent expense. These arrangements had no effect on the
Portfolio's expense ratio.
See Accompanying Notes to Financial Statements.
49
<PAGE>
WARBURG PINCUS TRUST
NOTES TO FINANCIAL STATEMENTS
December 31, 1999
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Warburg Pincus Trust (the "Trust") is an open-end management investment
company registered under the Investment Company Act of 1940 (the "1940 Act"), as
amended, and currently offers six investment Portfolios (the "Portfolios"). The
International Equity Portfolio ("International Equity"), Post-Venture Capital
Portfolio ("Post-Venture Capital") and the Growth & Income Portfolio ("Growth &
Income") are diversified. The Small Company Growth Portfolio ("Small Company
Growth"), the Emerging Markets Portfolio ("Emerging Markets") and the Emerging
Growth Portfolio ("Emerging Growth") are non-diversified.
Investment objectives for each Portfolio are as follows: International Equity
seeks long-term capital appreciation; Small Company Growth seeks capital growth;
Post-Venture Capital and Emerging Markets seek long-term growth of capital;
Growth & Income seeks long-term growth of capital and income; and Emerging
Growth seeks maximum capital appreciation. Shares of a Portfolio are not
available directly to individual investors but may be offered only through (a)
variable-annuity contracts and variable life insurance contracts offered by
separate accounts of certain insurance companies and (b) tax-qualified pension
and retirement plans. Certain Portfolios may not be available in connection with
a particular contract or plan.
The net asset value ("NAV") 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 mean between the last reported bid and asked prices. If market
quotations are not readily available, securities and other assets are valued by
another method that the Board of Trustees believes accurately reflects fair
value. Debt that will mature in 60 days or less is valued on the basis of
amortized cost, which approximates market value, unless the Board determines
that using this method would not reflect an investment's value.
Post-Venture Capital initially values its investments in private-equity
portfolios at cost. After that, the Portfolio values these investments according
to reports from the private-equity portfolios that Abbott Capital Management,
LLC ("Abbott"), the Portfolio's sub-investment adviser, generally receives on a
quarterly basis. The Portfolio's NAV typically will not reflect interim changes
in the values of its private-equity-portfolio investments.
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
50
<PAGE>
WARBURG PINCUS TRUST
NOTES TO FINANCIAL STATEMENTS (CONT'D)
December 31, 1999
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES -- (CONT'D)
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 is due to changes in
the foreign exchange rate from that which is due to changes in market prices of
equity securities. The Portfolios isolate that portion of gains and losses on
investments in debt securities which is due to changes in the foreign exchange
rate from that which is due to changes in market prices of debt securities.
International Equity and Emerging Markets may invest in securities of foreign
countries and governments which involve certain risks in addition to those
inherent in domestic investments. Such risks generally include, among others,
currency risk (fluctuations in currency exchange rates), information risk (key
information may be inaccurate or unavailable) and political risk (expropriation,
nationalization or the imposition of capital or currency controls or punitive
taxes). Other risks of investing in foreign securities include liquidity and
valuation risks.
A Portfolio's investments in securities of issuers located in less developed
countries considered to be "emerging markets" involve risks in addition to those
generally applicable to foreign securities. Focusing on emerging (less
developed) markets involves higher levels of risk, including increased currency,
information, liquidity, market, political and valuation risks. Deficiencies in
regulatory oversight, market infrastructure, shareholder protections and company
laws could expose the Portfolio to operational and other risks as well. Some
countries may have restrictions that could limit the Portfolio's access to
attractive opportunities. Additionally, emerging markets often face serious
economic problems (such as high external debt, inflation and unemployment) that
could subject the Portfolio to increased volatility or substantial declines in
value.
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.
Some Portfolios may enter into forward currency contracts for the purchase or
sale of a specific foreign currency at a fixed price on a future
51
<PAGE>
WARBURG PINCUS TRUST
NOTES TO FINANCIAL STATEMENTS (CONT'D)
December 31, 1999
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES -- (CONT'D)
date. Risks may arise upon entering into these contracts from the potential
inability of counter-parties to meet the terms of their contracts and from
unanticipated movements in the value of a foreign currency relative to the U.S.
dollar. Each Portfolio will enter into forward foreign currency contracts
primarily for hedging purposes. Forward foreign currency contracts are adjusted
by the daily exhange rate of the underlying currency and any gains or losses are
recorded for financial statement purposes as unrealized until the contract
settlement date or an offsetting position is entered into. At December 31, 1999,
none of the Portfolios had open forward foreign currency contracts.
Dividends from net investment income and distributions of net realized
capital gains, if any, are declared and paid at least annually. However, to the
extent that a net realized capital gain can be reduced by a capital loss
carryover, such gain will not be distributed. Income and capital gain
distributions are determined in accordance with federal income tax regulations
which may differ from generally accepted accounting principles.
No provision is made for federal 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 of
1986, as amended, 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 Trust in connection with its organization have been
deferred and are being amortized over a period of five years from the date the
Trust 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 be subject to taxes imposed by countries in which they
invest, with respect to their investments in issuers existing or operating in
such countries. Such taxes are generally based on income earned or repatriated
and capital gains realized on the sale of such investments. The Portfolios
accrue such taxes when the related income or capital gains are earned.
Pursuant to an exemptive order issued by the Securities and Exchange
Commission, each Portfolio, along with other Warburg Pincus Funds, can transfer
uninvested cash balances to a pooled cash account, which is invested in
repurchase agreements secured by U.S. government securities. Securities
52
<PAGE>
WARBURG PINCUS TRUST
NOTES TO FINANCIAL STATEMENTS (CONT'D)
December 31, 1999
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES -- (CONT'D)
pledged as collateral for repurchase agreements are held by the Portfolios'
custodian bank until the agreements mature. Each agreement requires that the
market value of the collateral be sufficient to cover payments of interest and
principal; however, in the event of default or bankruptcy by the other party to
the agreement, retention of the collateral may be subject to legal proceedings.
At December 31, 1999, none of the Portfolios had investments in repurchase
agreements.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial 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 is used to offset a portion of their transfer
agent expense. For the period ended December 31, 1999, the Portfolios received
credits or reimbursements under the arrangement as follows:
PORTFOLIO AMOUNT
---------- -------
International Equity $48,166
Small Company Growth 93,504
Post-Venture Capital 9,819
Growth & Income 2,162
Emerging Markets 972
2. INVESTMENT ADVISER, CO-ADMINISTRATORS AND DISTRIBUTOR
On July 6, 1999, Credit Suisse Asset Management, LLC ("CSAM") became each
Portfolio's investment adviser as a result of the acquisition of Warburg Pincus
Asset Management, Inc. ("Warburg Pincus") by Credit Suisse Group ("Credit
Suisse") and the combination of Warburg Pincus with Credit Suisse's existing
U.S. asset management business. CSAM is an indirect wholly-owned U.S. subsidiary
of Credit Suisse. For its investment advisory services, CSAM receives the
following fees based on each portfolio's average daily net assets:
PORTFOLIO ANNUAL RATE
---------- ---------------------------------
International Equity 1.00% of average daily net assets
Small Company Growth 0.90% of average daily net assets
Post-Venture Capital 1.25% of average daily net assets
Growth & Income 0.75% of average daily net assets
Emerging Markets 1.25% of average daily net assets
Emerging Growth 0.90% of average daily net assets
53
<PAGE>
WARBURG PINCUS TRUST
NOTES TO FINANCIAL STATEMENTS (CONT'D)
December 31, 1999
- --------------------------------------------------------------------------------
2. INVESTMENT ADVISER, CO-ADMINISTRATORS AND DISTRIBUTOR -- (CONT'D)
For the period ended December 31, 1999, investment advisory fees, voluntary
waivers and reimbursements were as follows:
GROSS NET EXPENSE
PORTFOLIO ADVISORY FEE WAIVER ADVISORY FEE REIMBURSEMENTS
-------- ------------ --------- ------------ --------------
International Equity $4,048,114 $ 0 $4,048,114 $ 0
Small Company Growth 6,954,618 0 6,954,618 0
Post-Venture Capital 952,963 (134,246) 818,717 0
Growth & Income 145,134 (36,142) 108,992 0
Emerging Markets 77,967 (77,967) 0 (22,362)
Emerging Growth 5,760 (5,760) 0 (57,056)
Abbott serves as sub-investment adviser for Post-Venture Capital's assets
invested in U.S. or foreign private limited partnerships or other investment
Funds ("Private Fund Investments"). Pursuant to the sub-advisory agreement
between Abbott and CSAM, Abbott is entitled to a quarterly fee from CSAM at the
annual rate of 1.00% of the net asset value of Private Fund Investments, which
fee amount or a portion thereof may be waived by Abbott. No compensation is paid
by Post-Venture Capital to Abbott for its sub-investment advisory services.
Counsellors Funds Service, Inc. ("CFSI"), a wholly-owned subsidiary of CSAM,
served as co-administrator of each Fund until November 1, 1999. On November 1,
1999, Credit Suisse Asset Management Securities, Inc. ("CSAMSI") replaced CFSI
as co-administrator to each Portfolio. PFPC Inc. ("PFPC"), an indirect
subsidiary of PNC Bank Corp. ("PNC"), also serves as each Portfolio's
co-administrator. For its administrative services, CSAMSI receives a fee
calculated at an annual rate of .10% of each Portfolios' average daily net
assets.
For the period January 1, 1999 through October 31, 1999, co-administrative
services fees earned by CFSI were as follows:
PORTFOLIO CO-ADMINISTRATION FEE
-------- ---------------------
International Equity $316,367
Small Company Growth 596,474
Post-Venture Capital 56,430
Growth & Income 15,676
Emerging Markets 4,175
Emerging Growth 71
54
<PAGE>
WARBURG PINCUS TRUST
NOTES TO FINANCIAL STATEMENTS (CONT'D)
December 31, 1999
- --------------------------------------------------------------------------------
2. INVESTMENT ADVISER, CO-ADMINISTRATORS AND DISTRIBUTOR -- (CONT'D)
For the period November 1, 1999 through December 31, 1999, co-administrative
services fees earned by CSAMSI were as follows:
PORTFOLIO CO-ADMINISTRATION FEE
-------- ---------------------
International Equity $ 88,444
Small Company Growth 176,261
Post-Venture Capital 19,807
Growth & Income 3,675
Emerging Markets 2,062
Emerging Growth 569
For its administrative services to Small Company Growth, Post-Venture Capital
and Emerging Growth, PFPC currently receives a fee, exclusive of out-of-pocket
expenses, based on the following fee structure:
AVERAGE DAILY NET ASSETS ANNUAL RATE
------------------------ ---------------------------------
First $500 million .100% of average daily net assets
Next $1 billion .075% of average daily net assets
Over $1.5 billion .050% of average daily net assets
For its administrative services to Growth & Income, PFPC currently receives a
fee, exclusive of out-of-pocket expenses, based on the following fee structure:
AVERAGE DAILY NET ASSETS ANNUAL RATE
------------------------ --------------------------------
First $500 million .15% of average daily net assets
Next $1 billion .10% of average daily net assets
Over $1.5 Billion .05% of average daily net assets
For its administrative services to International Equity and Emerging Markets,
PFPC currently receives a fee, exclusive of out-of-pocket expenses, based on the
following fee structure:
AVERAGE DAILY NET ASSETS ANNUAL RATE
------------------------ --------------------------------
First $250 million .12% of average daily net assets
Second $250 million .10% of average daily net assets
Third $250 million .08% of average daily net assets
Over $750 million .05% of average daily net assets
For the period ended December 31, 1999, administrative services fees earned
by PFPC were as follows:
NET
PORTFOLIO CO-ADMINISTRATION FEE WAIVER CO-ADMINISTRATION FEE
-------- --------------------- ------- ---------------------
International Equity $472,333 $0 $472,333
Small Company Growth 708,373 0 708,373
Post-Venture Capital 81,662 0 81,662
Growth & Income 32,356 (29,027) 3,329
Emerging Markets 17,133 (7,484) 9,649
Emerging Growth 1,028 (640) 388
55
<PAGE>
WARBURG PINCUS TRUST
NOTES TO FINANCIAL STATEMENTS (CONT'D)
December 31, 1999
- --------------------------------------------------------------------------------
2. INVESTMENT ADVISER, CO-ADMINISTRATORS AND DISTRIBUTOR -- (CONT'D)
CSAMSI also serves as distributor of each Portfolio's shares without
compensation. Provident Distributors, Inc. will become each Portfolio's
distributor effective January 1, 2000.
3. LINE OF CREDIT
The Portfolios, together with other Funds advised by CSAM, have established a
$250 million committed, unsecured, line of credit facility ("Credit Facility")
with Deutche Bank AG as administrative agent, State Street Bank and Trust
Company as operations agent, Bank of Nova Scotia as syndication agent and
certain other lenders, for temporary or emergency purposes primarily relating to
unanticipated Fund share redemptions. Under the terms of the Credit Facility,
the Funds with access to the Credit Facility pay an aggregate commitment fee at
a rate of .075% per annum on the average daily balance of the Credit Facility
that is undisbursed and uncanceled during the preceding quarter allocated among
the participating Funds in such manner as is determined by the governing Boards
of the various Funds. In addition, the participating Funds will pay interest on
borrowing at the Federal funds rate plus .50%. At December 31, 1999, there were
no loans outstanding for any of the Portfolios. During the period ended December
31, 1999, the Portfolios had the following borrowings under the Credit Facility:
AVERAGE DAILY AVERAGE MAXIMUM DAILY
PORTFOLIO LOAN BALANCE INTEREST RATE % LOAN OUTSTANDING
------ ------------- --------------- ----------------
International Equity $ 2,389 5.506% $ 872,000
Post Venture Capital 53,584 5.739 4,311,000
4. INVESTMENTS IN SECURITIES
For the period ended December 31, 1999, purchases and sales of investment
securities (excluding short-term investments) were as follows:
PORTFOLIO PURCHASES SALES
-------- ------------ ------------
International Equity $573,211,624 $555,823,290
Small Company Growth 919,811,022 899,439,726
Post-Venture Capital 95,299,056 60,127,955
Growth & Income 24,261,411 17,459,743
Emerging Markets 16,270,459 8,454,669
Emerging Growth 4,689,675 508,841
At December 31, 1999, 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) were as follows:
56
<PAGE>
WARBURG PINCUS TRUST
NOTES TO FINANCIAL STATEMENTS (CONT'D)
December 31, 1999
- --------------------------------------------------------------------------------
4. INVESTMENTS IN SECURITIES -- (CONT'D)
NET UNREALIZED
UNREALIZED UNREALIZED APPRECIATION
PORTFOLIO APPRECIATION DEPRECIATION (DEPRECIATION)
-------- ------------ ------------ --------------
International Equity $193,183,566 $(10,797,330) $182,386,236
Small Company Growth 508,933,989 (31,403,050) 477,530,939
Post-Venture Capital 61,211,934 (2,964,816) 58,247,118
Growth & Income 1,792,295 (1,121,869) 670,426
Emerging Markets 3,693,691 (94,655) 3,599,036
Emerging Growth 1,028,580 (103,109) 925,471
5. EQUITY SWAP TRANSACTIONS
International Equity and Emerging Markets each entered into equity swap
agreements dated January 7, 1999, January 8, 1999 and January 11, 1999. Each
Portfolio paid a notional amount plus a 1.25% upfront fee for a basket of
Singapore local common stocks. The initial notional amount represented the
then-current market value of the common stock. The notional amount is
marked-to-market daily. The final notional amount at termination will be the
average execution price of unwinding the counterparty's hedge for the swap (the
sale of the basket of common stocks) at termination. Each Portfolio will receive
the final notional amount, less a 1.25% fee, five business days after the
termination date.
During the term of the equity swap agreements, each Portfolio is entitled to
dividends on the stock less a dividend withholding tax of 26% and a 1%
processing fee (not to exceed $1,000). Each Portfolio will recognize the net
dividend amount received as dividend income on the ex-dividend date and will
receive each dividend five business days after the payment date. In addition, a
Portfolio may instruct the counterparty regarding participation in any rights
offerings of the common stock, in exchange for the subscription price plus a
.075% fee to the counterparty. At December 31, 1999, International Equity and
Emerging Markets had realized gains of $2,601,229 and $19,008, respectively, on
the equity swap transaction which is included in the net realized gain (loss)
from security and other related transactions. At December 31, 1999, each
Portfolio no longer held a position in the swap.
6. RESTRICTED SECURITIES
Certain investments held by a Portfolio are restricted as to resale and
valued by a method that the Board of Trustee's believes reflects fair value. A
summary of the restricted securities held at December 31, 1999 follows:
57
<PAGE>
WARBURG PINCUS TRUST
NOTES TO FINANCIAL STATEMENTS (CONT'D)
December 31, 1999
- --------------------------------------------------------------------------------
6. RESTRICTED SECURITIES -- (CONT'D)
<TABLE>
<CAPTION>
SECURITY ACQUISITION MARKET PERCENTAGE
PORTFOLIO DESCRIPTION DATE COST VALUE OF NET ASSETS
-------------- ------------------------- ----------- ---------- ---------- -------------
<S> <C> <C> <C> <C> <C>
Small Company Growth Common Places, LLC 02/18/99 $1,000,000 $5,516,150 0.43%
Post-Venture Capital Chaparral Resources, Inc. 07/28/98 250,000 21,877 0.01%
MaMaMedia, Inc. 09/13/99 499,997 499,997 0.33%
Women.com Networks, Inc. 06/04/98 302,251 925,828 0.61%
</TABLE>
7. CAPITAL SHARE TRANSACTIONS
Each Portfolio is authorized to issue an unlimited number of full and
fractional shares of beneficial interest, par value $.001 per share.
Transactions in shares of each Portfolio were as follows:
INTERNATIONAL EQUITY SMALL COMPANY GROWTH
------------------------ ----------------------
FOR THE FOR THE
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
------------------------ ----------------------
1999 1998 1999 1998
------------ ---------- ---------- ----------
Shares sold 105,705,211 50,488,163 15,117,273 22,514,856
Shares issued to
shareholders on
reinvestment of dividends
and distributions 339,565 181,099 1,548,475 0
Shares redeemed (102,235,233)(50,915,580) (13,998,434)(17,112,706)
------------ ---------- ---------- ----------
Net increase (decrease)
in shares outstanding 3,809,543 (246,318) 2,667,314 5,402,150
============ ========== ========== ==========
POST-VENTURE CAPITAL GROWTH & INCOME
------------------------ ----------------------
FOR THE FOR THE
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
------------------------ ----------------------
1999 1998 1999 1998
------------ ---------- ---------- ----------
Shares sold 10,839,440 7,145,658 972,221 1,266,220
Shares issued to
shareholders on
reinvestment of dividends
and distributions 0 0 44,754 10,402
Shares redeemed (8,211,345) (4,652,230) (574,620) (216,723)
------------ ---------- ---------- ----------
Net increase in
shares outstanding 2,628,095 2,493,428 442,355 1,059,899
============ ========== ========== ==========
EMERGING MARKETS EMERGING GROWTH
------------------------ ----------------------
FOR THE FOR THE
YEAR ENDED PERIOD ENDED
DECEMBER 31, DECEMBER 31,
------------------------ ----------------------
1999 1998 1999*
------------ ---------- ----------
Shares sold 1,078,529 343,741 508,976
Shares issued to
shareholders on
reinvestment of dividends
and distributions 47,149 1,900 3,097
Shares redeemed (271,684) (16,292) (5,215)
------------ ---------- ----------
Net increase in shares
outstanding 853,994 329,349 506,858
============ ========== ==========
- ----------------------
* Inception date September 13, 1999.
58
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WARBURG PINCUS TRUST
NOTES TO FINANCIAL STATEMENTS (CONT'D)
December 31, 1999
- --------------------------------------------------------------------------------
8. RECLASSIFICATION OF COMPOSITION OF NET ASSETS
At December 31, 1999, capital contributions, undistributed net investment
income, accumulated net realized gain/(loss) from security transactions and
current period distributions have been adjusted for current period permanent
book/tax differences which arose principally from differing book/tax treatments
of foreign currency transactions. International Equity, Small Company Growth,
Post-Venture Capital, Growth & Income, Emerging Markets and Emerging Growth
reclassified $2,477,006, $5,234,986, ($655), $2,347, ($28,087) and $487,
respectively, from accumulated net realized gain/(loss) from security
transactions to undistributed net investment income. International Equity, Small
Company Growth, Post-Venture Capital, Growth & Income, Emerging Markets and
Emerging Growth reclassified ($5,357), ($360,016), ($666,947), ($69), ($74,683)
and ($35,000), respectively, from accumulated net investment income/(loss) to
capital contributions. Net investment income, net realized gain/(loss) on
investments and net assets were not affected by these reclassifications.
9. CAPITAL LOSS CARRYOVER
At December 31, 1999, Post-Venture Capital had capital loss carryovers
available to offset possible future capital gains of $2,734,157 expiring in
2006. During the fiscal year ended December 31, 1999, International Equity,
Small Company Growth, Post-Venture Capital, Growth & Income and Emerging Markets
utilized $42,448,391, $41,329,403, $2,501,445, $406,891 and $184,106,
respectively, of capital losses.
59
<PAGE>
WARBURG PINCUS TRUST
REPORT OF INDEPENDENT ACCOUNTANTS
- --------------------------------------------------------------------------------
To the Board of Trustees and Shareholders of
WARBURG PINCUS TRUST:
In our opinion, the accompanying statements of assets and liabilities, including
the schedule of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Warburg Pincus Trust--International
Equity Portfolio, Small Company Growth Portfolio, Post-Venture Capital
Portfolio, Growth & Income Portfolio, Emerging Markets Portfolio and Emerging
Growth Portfolio (all portfolios collectively referred to as the "Trust") at
December 31, 1999, and the results of each of their operations for the year (or
period) then ended, the changes in each of their net assets for each of the two
years (or periods) in the period then ended and the financial highlights for
each of the years (or periods) presented, in conformity with accounting
principles generally accepted in the United States. These financial statements
and financial highlights (hereafter referred to as "financial statements") are
the responsibility of the Trust's management; our responsibility is to express
an opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with auditing standards
generally accepted in the United States, which require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements,
assessing the accounting principles used and significant estimates made by
management, and evaluating the overall financial statement presentation. We
believe that our audits, which included confirmation of securities at December
31, 1999 by correspondence with the custodians and brokers, provide a reasonable
basis for the opinion expressed above.
PricewaterhouseCoopers LLP
2400 Eleven Penn Center
Philadelphia, Pennsylvania
February 3, 2000
60
<PAGE>
- --------------------------------------------------------------------------------
RESULTS OF SPECIAL MEETING OF SHAREHOLDERS
At a special meeting of shareholders held on May 21, 1999, the following
proposals were submitted for the vote of shareholders of the Trust. The
proposals and voting results were:
1. To approve a new investment advisory agreement between each portfolio and
CSAM.
INTERNATIONAL % OF SHARES TO TOTAL % OF SHARES TO TOTAL
EQUITY PORTFOLIO SHARES OUTSTANDING SHARES SHARES VOTED
- ---------------- --------------- -------------------- --------------------
For 29,735,919.3661 90.4856% 91.1988%
Against 502,724.3810 1.5298% 1.5418%
Abstain 2,366,964.4931 7.2026% 7.2594%
SMALL COMPANY % OF SHARES TO TOTAL % OF SHARES TO TOTAL
GROWTH PORTFOLIO SHARES OUTSTANDING SHARES SHARES VOTED
- ---------------- --------------- -------------------- --------------------
For 38,614,143.4080 87.5109% 90.0685%
Against 928,384.6052 2.1040% 2.1655%
Abstain 3,329,468.8245 7.5455% 7.7661%
POST-VENTURE % OF SHARES TO TOTAL % OF SHARES TO TOTAL
CAPITAL PORTFOLIO SHARES OUTSTANDING SHARES SHARES VOTED
- ----------------- --------------- -------------------- --------------------
For 4,736,865.2862 91.5495% 92.3529%
Against 110,429.3639 2.1343% 2.1530%
Abstain 281,795.8329 5.4463% 5.4941%
GROWTH & INCOME % OF SHARES TO TOTAL % OF SHARES TO TOTAL
PORTFOLIO SHARES OUTSTANDING SHARES SHARES VOTED
- --------------- --------------- -------------------- --------------------
For 1,189,345.1710 85.6098% 89.1694%
Against 54,742.6390 3.9404% 4.1042%
Abstain 89,716.8790 6.4579% 6.7264%
EMERGING MARKETS % OF SHARES TO TOTAL % OF SHARES TO TOTAL
PORTFOLIO SHARES OUTSTANDING SHARES SHARES VOTED
- ---------------- --------------- --------------------- --------------------
For 344,882.5198 88.4669% 88.4715%
Against 28,717.5180 7.3664% 7.3668%
Abstain 16,223.3862 4.1615% 4.1617%
2. To elect Trustees of the Trust.
INTERNATIONAL EQUITY PORTFOLIO FOR WITHELD
------------------------------ --------------- --------------
R.H. Francis 31,398,156.9328 1,207,451.3074
J.W. Fritz 31,403,917.8718 1,201,690.3684
J.E. Garten 31,420,501.4808 1,185,106.7594
J.S. Pasman 31,410,566.7228 1,195,041.5174
W.W. Priest 31,419,399.9988 1,186,208.2414
S.N. Rappaport 31,427,010.1528 1,178,598.0874
A.M. Reichman 31,430,218.9338 1,175,389.3064
A.B. Trowbridge 31,399,478.6148 1,206,129.6254
61
<PAGE>
- ----------------------------------------------------------------------------
RESULTS OF SPECIAL MEETING OF SHAREHOLDERS -- (CONT'D)
SMALL COMPANY GROWTH PORTFOLIO FOR WITHELD
------------------------------ --------------- --------------
R.H. Francis 41,042,356.1172 1,829,640.7205
J.W. Fritz 41,041,688.5415 1,830,308.2962
J.E. Garten 41,064,531.1652 1,807,465,6725
J.S. Pasman 41,044,146.4763 1,827,850.3614
W.W. Priest 41,054,244.4816 1,817,752.3561
S.N. Rappaport 41,063,335.1724 1,808,661.6653
A.M. Reichman 41,063,166.3287 1,808,830.5090
A.B. Trowbridge 41,042,120.1436 1,829,876.6941
POST-VENTURE CAPITAL PORTFOLIO FOR WITHELD
------------------------------ -------------- ------------
R.H. Francis 4,955,061.5045 174,028.9785
J.W. Fritz 4,955,061.5045 174,028.9785
J.E. Garten 4,955,061.5045 174,028.9785
J.S. Pasman 4,955,061.5045 174,028.9785
W.W. Priest 4,955,061.5045 174,028.9785
S.N. Rappaport 4,955,061.5045 174,028.9785
A.M. Reichman 4,955,061.5045 174,028.9785
A.B. Trowbridge 4,955,061.5045 174,028.9785
GROWTH & INCOME PORTFOLIO FOR WITHELD
------------------------- -------------- ------------
R.H. Francis 1,306,326.3770 27,478.3120
J.W. FRITZ 1,306,326.3770 27,478.3120
J.E. Garten 1,306,326.3770 27,478.3120
J.S. Pasman 1,306,326.3770 27,478.3120
W.W. Priest 1,306,326.3770 27,478.3120
S.N. Rappaport 1,306,326.3770 27,478.3120
A.M. Reichman 1,306,326.3770 27,478.3120
A.B. Trowbridge 1,306,326.3770 27,478.3120
EMERGING MARKETS PORTFOLIO FOR WITHELD
-------------------------- ------------ -----------
R.H. Francis 375,617.5988 14,205.8252
J.W. Fritz 375,617.5988 14,205.8252
J.E. Garten 375,617.5988 14,205.8252
J.S. Pasman 375,617.5988 14,205.8252
W.W. Priest 375,617.5988 14,205.8252
S.N. Rappaport 375,617.5988 14,205.8252
A.M. Reichman 375,617.5988 14,205.8252
A.B. Trowbridge 375,617.5988 14,205.8252
62
<PAGE>
- ----------------------------------------------------------------------------
RESULTS OF SPECIAL MEETING OF SHAREHOLDERS -- (CONT'D)
3. To ratify the selection of PricewaterhouseCoopers LLP as the independent
accountants for the Trust.
INTERNATIONAL % OF SHARES TO TOTAL % OF SHARES TO TOTAL
EQUITY PORTFOLIO SHARES OUTSTANDING SHARES SHARES VOTED
- ----------------- --------------- -------------------- --------------------
For 30,885,819.9407 93.9847% 94.7255%
Against 255,501.3069 0.7775% 0.7836%
Abstain 1,464,286.9926 4.4558% 4.4909%
SMALL COMPANY % OF SHARES TO TOTAL % OF SHARES TO TOTAL
GROWTH PORTFOLIO SHARES OUTSTANDING SHARES SHARES VOTED
- ---------------- ---------------- -------------------- --------------------
For 39,202,501.1764 88.8443% 91.4408%
Against 621,952.9131 1.4095% 1.4507%
Abstain 3,047,542.7482 6.9066% 7.1085%
POST-VENTURE % OF SHARES TO TOTAL % OF SHARES TO TOTAL
CAPITAL PORTFOLIO SHARES OUTSTANDING SHARES SHARES VOTED
- ----------------- ---------------- -------------------- --------------------
For 4,882,639.7840 94.3669% 95.1950%
Against 47,900.9667 0.9258% 0.9339%
Abstain 198,549.7314 3.8374% 3.8711%
GROWTH & INCOME % OF SHARES TO TOTAL % OF SHARES TO TOTAL
PORTFOLIO SHARES OUTSTANDING SHARES SHARES VOTED
- --------------- ---------------- -------------------- --------------------
For 1,246,228.9910 89.7043% 93.4341%
Against 16,300.8250 1.1733% 1.2221%
Abstain 71,274.8730 5.1304% 5.3437%
EMERGING MARKETS % OF SHARES TO TOTAL % OF SHARES TO TOTAL
PORTFOLIO SHARES OUTSTANDING SHARES SHARES VOTED
- ---------------- ---------------- -------------------- --------------------
For 372,886.5090 95.6503% 95.6552%
Against 3,300.5910 0.8466% 0.8467%
Abstain 13,636.3240 3.4979% 3.4981%
4. To approve a new sub-investment advisory agreement between each portfolio,
CSAM and the portfolio's sub-investment adviser.
POST-VENTURE % OF SHARES TO TOTAL % OF SHARES TO TOTAL
CAPITAL PORTFOLIO SHARES OUTSTANDING SHARES SHARES VOTED
- ----------------- ---------------- -------------------- --------------------
For 4,626,424.3676 89.4150% 90.1997%
Against 133,767.3892 2.5853% 2.6080%
Abstain 368,898.7262 7.1297% 7.1923%
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