-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, PGPsY9MwTQnVEc40QVB2ekazrCKmLP9AEGHuz2h4/zohTEKmB4omsQ02tIHM8282 1XKvESAufGzkXuTqE+sevA== 0000899140-98-000448.txt : 19981022 0000899140-98-000448.hdr.sgml : 19981022 ACCESSION NUMBER: 0000899140-98-000448 CONFORMED SUBMISSION TYPE: 497 PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 19981021 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: WARBURG PINCUS MUNICIPAL BOND FUND INC CENTRAL INDEX KEY: 0001067475 STANDARD INDUSTRIAL CLASSIFICATION: [] STATE OF INCORPORATION: MD FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: 497 SEC ACT: SEC FILE NUMBER: 333-60947 FILM NUMBER: 98728378 BUSINESS ADDRESS: STREET 1: 466 LEXINGTON AVENUE CITY: NEW YORK STATE: NY ZIP: 10017-3147 BUSINESS PHONE: 2127166081 MAIL ADDRESS: STREET 1: 466 LEXINGTON AVENUE CITY: NEW YORK STATE: NY ZIP: 10017-3147 497 1 PROSPECTUS SUPPLEMENT WARBURG PINCUS LONG-SHORT MARKET NEUTRAL FUND WARBURG PINCUS LONG-SHORT EQUITY FUND Supplement to Combined Prospectus/Proxy Statement dated September 11, 1998 ------------------------------- Both the Warburg Pincus Long-Short Market Neutral Fund and the corresponding BEA Long-Short Market Neutral Fund (the "Market Neutral Funds") seek to achieve their respective investment objectives by, among other things, taking short positions in stocks that the Funds' investment adviser has identified as overvalued. Until a security sold short by the Market Neutral Funds is replaced, the Funds are required to repay the lender of the security any dividends or interest that accrue during the period of the loan ("short-sale dividends"). As such, short-sale dividends of each Market Neutral Fund are treated, for accounting purposes, as an expense of the Fund. Moreover, because the Warburg Pincus Long-Short Equity Fund and the BEA Long-Short Equity Fund (the "Long-Short Funds") each invest in shares of the corresponding Market Neutral Fund, short-sale dividends of each Market Neutral Fund are treated as an indirect expense of the corresponding Long-Short Fund. The impact of short-sale dividends on the expense ratios of the Market Neutral Funds and the Long-Short Funds (collectively, the "Funds") was not reflected in the "Fee Table" information contained in the Combined Prospectus/Proxy Statement (the "Prospectus"). Although it is not possible to predict the amount of short-sale dividends that would be incurred during the first fiscal year of the Funds' operations, such amounts, when incurred, could materially adversely affect the investment returns of the Funds. The following modifies the "Fee Table" information contained in the Prospectus to reflect that short-sale dividends have not been included in the Funds' annual operating expenses, expense limitations and expense examples. Capitalized terms used below, unless otherwise defined, have the same meaning assigned to them in the Prospectus.
MARKET NEUTRAL FUND Institutional Shares* Common Shares** BEA BEA Fund Warburg (Advisor) Warburg Fund Fund Fund Annual Operating Expenses (after fee waivers and expense reimbursements) Management fees............ 1.40% 1.40% 1.40% 1.40% 12b-1 fees................. None None .25% .25% Other expenses+............ .60% .60% .60% .60% Total Operating Expenses (after waivers and reimbursements)+.............. 2.00% 2.00% 2.25% 2.25%
LONG-SHORT FUND Institutional Shares* Common Shares** BEA Warburg (Advisor) Warburg BEA Fund Fund Fund Fund Annual Operating Expenses (after fee waivers and expense reimbursements) Management fees........... 0% 0% 0% 0% 12b-1 fees................ None None .25% .25% Other expenses+........... 2.50% 2.50% 2.50% 2.50% Total Operating Expenses (after waivers and reimbursements)+............. 2.50% 2.50% 2.75% 2.75%
+ "Other expenses" and "Total Operating Expenses" do not include short-sale dividends (estimated at 1.50% and 1.35% for the first fiscal years of the Market Neutral Funds and the Long-Short Funds, respectively), which are included in and reduce the investment return of the Funds. * BEA has agreed to waive fees and reimburse expenses of the Institutional Shares of each Warburg Fund for a one-year period following the closing of the Reorganization so that the expense ratio of such shares (exclusive of short-sale dividends) will be no higher than that of the Institutional class of the corresponding BEA Fund (exclusive of short-sale dividends) for the thirty days ending on the Closing Date of the Reorganization, plus the performance adjustment fee applicable to the Long-Short Neutral Fund. ** BEA and CFSI have agreed to waive fees and reimburse expenses of the Common Shares of each Warburg Fund for a one-year period following the closing of the Reorganization so that the expense ratio of such shares (exclusive of short-sale dividends) will be no higher than that of the Advisor class of the corresponding BEA Fund (exclusive of short-sale dividends) for the thirty days ending on the Closing Date of the Reorganization, plus the performance adjustment fee applicable to the Long-Short Neutral Fund. The above tables reflect a voluntary assumption of some of the additional expenses of the Funds by BEA and, with respect to the Common Shares of the Warburg Funds, CFSI in order to limit the operating expenses of each class of the Funds (exclusive of short-sale dividends) to the percentage of the Funds' average daily net assets noted under "Total Operating Expenses," plus the performance adjustment fee applicable to the Long-Short Neutral Fund. Absent such expense reimbursements, under current expense levels, the resulting fees and expenses for the Funds (exclusive of short-sale dividends) would be as follows:
RULE MANAGEMENT 12b-1 OTHER TOTAL FUND FEES FEES EXPENSES EXPENSES Market Neutral Fund/Institutional Shares BEA Fund............. 1.50% 0 .60% 2.10% Warburg Fund......... 1.50% 0 .60% 2.10% Market Neutral Fund/Common Shares BEA (Advisor) Fund... 1.50% .25% .60% 2.35% Warburg Fund......... 1.50% .25% .60% 2.35% Long-Short Fund/Institutional Shares BEA Fund............. .10% 0 2.50% 2.60% Warburg Fund......... .10% 0 2.50% 2.60% Long-Short Fund/Common Shares BEA (Advisor) Fund... .10% .25% 2.50% 2.85% Warburg Fund......... .10% .25% 2.50% 2.85%
The expense examples for the Funds provided in the Prospectus exclude short-sale dividends and assume payment of operating expenses at the levels set forth in the "Annual Operating Expenses" tables above. Dated: October 21, 1998 -----END PRIVACY-ENHANCED MESSAGE-----