NOTES TO FINANCIAL STATEMENTS
December 31, 1999
1. SIGNIFICANT ACCOUNTING POLICIES
The Warburg Pincus Cash Reserve Fund ("Cash Reserve") and Warburg Pincus New York Tax Exempt Fund
("New York Tax Exempt") are registered under the Investment Company Act of 1940, as amended (the "1940
Act"), as diversified and non-diversified, open-end management investment companies, respectively.
Investment objectives for each Fund are as follows: Cash Reserve is designed to provide investors with high
current income consistent with liquidity and stability of principal; New York Tax Exempt is designed to provide
investors with as high a level of current income that is exempt from federal, New York state and New York City
personal income taxes as is consistent with preservation of capital and liquidity.
Certain New York state and New York City municipal obligations in New York Tax Exempt may be obligations
of issuers which rely in whole or in part on New York state or New York City revenues, real property taxes,
revenues from health care institutions, or obligations secured by mortgages on real property. Consequently, the
possible effect of economic conditions in New York or of changes in New York regulations on these obligations
must be considered.
The net asset value of each Fund is determined twice daily as of noon and the close of regular trading on the New
York Stock Exchange. Each Fund's investments are valued under the amortized cost method, which
approximates market value, unless a Fund's Board of Directors determines that using this method would not
reflect an investment's value. Amortized cost involves valuing a Fund holding initially at its cost and then assumes
a constant amortization to maturity of any discount or premium. The amortized cost method ignores any impact of
fluctuating interest rates.
Security transactions are accounted for on a trade date basis. Interest income is recorded on the accrual basis.
The cost of investments sold is determined by use of the specific identification m