NOTES TO FINANCIAL STATEMENTS
October 31, 1995
1. SIGNIFICANT ACCOUNTING POLICIES
The Warburg Pincus Equity Funds are comprised of Warburg Pincus Capital Appreciation Fund (the 'Capital
Appreciation Fund'), Warburg Pincus International Equity Fund (the 'International Equity Fund') and Warburg
Pincus Post-Venture Capital Fund (the 'Post-Venture Capital Fund') which are registered under the Investment
Company Act of 1940, as amended (the '1940 Act'), as diversified, open-end management investment
companies, and Warburg Pincus Emerging Growth Fund (the 'Emerging Growth Fund'), Warburg Pincus Japan
OTC Fund (the 'Japan OTC Fund') and Warburg Pincus Emerging Markets Fund (the 'Emerging Markets Fund',
together with the Capital Appreciation Fund, the International Equity Fund, the Post-Venture Capital Fund, the
Emerging Growth Fund and the Japan OTC Fund, the 'Funds') which are registered under the 1940 Act as non-
diversified, open-end management investment companies.
Investment objectives for each Fund are as follows: the Capital Appreciation Fund, the International Equity Fund
and the Japan OTC Fund seek long-term capital appreciation; the Emerging Growth Fund seeks maximum
capital appreciation; the Emerging Markets Fund seeks growth of capital; the Post-Venture Capital Fund seeks
long-term growth of capital.
Each Fund offers two classes of shares, one class being referred to as Common Shares and one class being
referred to as Advisor Shares. Common and Advisor Shares in each Fund represent an equal pro rata interest in
such Fund, except that they bear different expenses which reflect the difference in the range of services provided
to them. Common Shares for the Japan OTC Fund, the Emerging Markets Fund and the Post-Venture Capital
Fund bear expenses paid pursuant to a shareholder servicing and distribution plan adopted by each Fund at an
annual rate not to exceed .25% of the average daily net asset value of each Fund's outstanding Common Shares.
Advisor Shares for each Fund bear expense