-----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, AzAdVKhBAOoanx/FXEieJivhd/R775Mhv7tlzjNNHU4UiNT2sIWKOT14Kvib1dQZ 94R8xKoYW3JvTRxDo4MxaQ== 0000912057-04-000432.txt : 20040429 0000912057-04-000432.hdr.sgml : 20040429 20040429164813 ACCESSION NUMBER: 0000912057-04-000432 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20040229 FILED AS OF DATE: 20040429 EFFECTIVENESS DATE: 20040429 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CREDIT SUISSE INSTITUTIONAL FIXED INCOME FUND INC CENTRAL INDEX KEY: 0001067471 IRS NUMBER: 510349732 STATE OF INCORPORATION: MD FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: N-CSRS SEC ACT: 1940 Act SEC FILE NUMBER: 811-08917 FILM NUMBER: 04765705 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 FORMER COMPANY: FORMER CONFORMED NAME: CREDIT SUISSE INSTITUTIONAL US CORE FIXED INCOME FUND INC DATE OF NAME CHANGE: 20000516 FORMER COMPANY: FORMER CONFORMED NAME: WARBURG PINCUS US CORE FIXED INCOME FUND INC DATE OF NAME CHANGE: 19980804 N-CSRS 1 a2134553zn-csrs.txt N-CSRS UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act File No. 811-08917 ------------------------------------------------------- CREDIT SUISSE INSTITUTIONAL FIXED INCOME FUND, INC. ------------------------------------------------------- (Exact Name of Registrant as Specified in Charter) 466 Lexington Avenue, New York, New York 10017-3140 ------------------------------------------------------- (Address of Principal Executive Offices) (Zip Code) Hal Liebes, Esq. Credit Suisse Institutional Fixed Income Fund, Inc. 466 Lexington Avenue New York, New York 10017-3140 Registrant's telephone number, including area code:(212) 875-3500 Date of fiscal year end: August 31, 2004 Date of reporting period: September 1, 2003 to February 29, 2004 ITEM 1. REPORTS TO STOCKHOLDERS. [CREDIT SUISSE ASSET MANAGEMENT LOGO] CREDIT SUISSE INSTITUTIONAL FUNDS FIXED INCOME FUND HIGH YIELD FUND FEBRUARY 29, 2004 SEMIANNUAL REPORT (UNAUDITED) THE FUNDS' INVESTMENT OBJECTIVES, RISKS, CHARGES, AND EXPENSES (WHICH SHOULD BE CONSIDERED CAREFULLY BEFORE INVESTING), AND MORE COMPLETE INFORMATION ABOUT THE FUNDS, ARE PROVIDED IN THE PROSPECTUS, WHICH SHOULD BE READ CAREFULLY BEFORE INVESTING. YOU MAY OBTAIN ADDITIONAL COPIES BY CALLING 800-222-8977 OR BY WRITING TO CREDIT SUISSE INSTITUTIONAL FUNDS, P.O. BOX 8500, BOSTON, MA 02266-8500. CREDIT SUISSE ASSET MANAGEMENT SECURITIES, INC., DISTRIBUTOR, IS LOCATED AT 466 LEXINGTON AVE., NEW YORK, NY 10017-3140. CREDIT SUISSE INSTITUTIONAL FUNDS ARE ADVISED BY CREDIT SUISSE ASSET MANAGEMENT, LLC. THE FUNDS' 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 REPRESENT PAST PERFORMANCE AND INCLUDE CHANGE IN SHARE PRICE AND REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS. PAST PERFORMANCE CANNOT GUARANTEE FUTURE RESULTS. DUE TO MARKET VOLATILITY, THE PERFORMANCE OF THE FUNDS MAY BE LOWER OR HIGHER THAN THE FIGURES SHOWN. RETURNS AND SHARE PRICE WILL FLUCTUATE, AND REDEMPTION VALUE MAY BE MORE OR LESS THAN ORIGINAL COST. PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH-END IS AVAILABLE AT WWW.CSAM.COM. THE VIEWS OF THE FUNDS' MANAGEMENT ARE AS OF THE DATE OF THE LETTER AND THE FUND HOLDINGS DESCRIBED IN THIS DOCUMENT ARE AS OF FEBRUARY 29, 2004; THESE VIEWS AND FUND HOLDINGS MAY HAVE CHANGED SUBSEQUENT TO THESE DATES. NOTHING IN THIS DOCUMENT IS A RECOMMENDATION TO PURCHASE OR SELL SECURITIES. FUND 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. FUND INVESTMENTS ARE SUBJECT TO INVESTMENT RISKS, INCLUDING LOSS OF YOUR INVESTMENT. CREDIT SUISSE INSTITUTIONAL FIXED INCOME FUND SEMIANNUAL INVESTMENT ADVISER'S REPORT (UNAUDITED) March 23, 2004 Dear Shareholder: We are writing to report on the results of the Credit Suisse Institutional Fixed Income Fund (the "Fund") for the fiscal half-year ended February 29, 2004. At February 29, 2004, the net asset value ("NAV") per share of the Fund's shares was $14.63, compared to an NAV per share of $14.27 on August 31, 2003. Assuming the reinvestment of distributions totalling $0.40199 per share, the Fund's total return was 5.48%(1). By comparison, the Lehman Brothers U.S. Aggregate Bond Index(2) rose 4.92% during the same period. Overall market conditions in the half-year were bond-friendly, in our view. Economic activity continued to gather upward momentum, exemplified by vigorous gains in GDP growth, capital spending, and key surveys of sentiment among businesses and consumers. While each of these might normally trigger concerns that interest rates could rise, however, such concerns appeared to be alleviated by persistently low inflation, robust increases in productivity and weak employment data. In addition, the Federal Reserve left interest rates unchanged and, in a number of public statements, made clear its inclination to leave them that way for some time. Volatility fell while risk appetite rose. Occasional market jitters notwithstanding, the Fed's comments helped to dampen volatility by lending a degree of certainty to perceptions about the level of interest rates, at least in the near term. Risk appetite benefited from the improving tone of economic statistics and encouraging signs that the economic recovery was expanding beyond consumers and into the corporate sector. Not surprisingly, spread-based debt outperformed in this environment. Returns--both absolute and relative--were thus highest among longer-maturity corporate bonds, which drew buyers attracted by comparatively higher yields. High yield and lower-rated investment-grade issues (I.E., rated BAA) were thus the top performers within the corporate universe. The Fund significantly outperformed its Lehman benchmark as a result of some of the same aspects of our strategy that had succeeded in the preceding fiscal period. The most successful of these included: - - We held exposure to high yield corporates, which greatly outperformed the investment-grade universe as a whole. - - We generated good relative performance in investment-grade corporates. Our approach here consisted of overweighting the allocation in terms of market value and duration, and emphasizing comparatively lower-quality credits. - - We enjoyed good security selection in mortgage-backed securities. Specifically, we focused on identifying pools of mortgage loans that we felt offered more desirable prepayment characteristics than the MBS market in aggregate. - - We chose to hold a small exposure to non-U.S. instruments. These included German government bonds that outperformed U.S. Treasuries, as well as small currency positions in the euro, yen and Australian dollar, all of which appreciated versus the U.S. dollar over the period. The least beneficial contributions to the Fund's overall return were modest in scope and came from our allocations to government agency issues, commercial mortgage-backed securities and asset-backed securities. We underweighted agencies and CMBS, both of which generated positive excess returns; and concentrated our ABS holdings in top-quality issues, which underperformed lower-quality ABS. Sincerely yours, Credit Suisse Fixed Income Management Team Jo Ann Corkran, Managing Director Suzanne E. Moran, Managing Director David N. Fisher, Director IN ADDITION TO HISTORICAL INFORMATION, THIS REPORT CONTAINS FORWARD-LOOKING STATEMENTS, WHICH MAY CONCERN, AMONG OTHER THINGS, DOMESTIC AND FOREIGN MARKET, INDUSTRY AND ECONOMIC TRENDS AND DEVELOPMENTS AND GOVERNMENT REGULATION AND THEIR POTENTIAL IMPACT ON THE FUND'S INVESTMENT PORTFOLIO. THESE STATEMENTS ARE SUBJECT TO RISKS AND UNCERTAINTIES AND ACTUAL TRENDS, DEVELOPMENTS AND REGULATIONS IN THE FUTURE, AND THEIR IMPACT ON THE FUND COULD BE MATERIALLY DIFFERENT FROM THOSE PROJECTED, ANTICIPATED OR IMPLIED. THE FUND HAS NO OBLIGATION TO UPDATE OR REVISE FORWARD-LOOKING STATEMENTS. 3 AVERAGE ANNUAL RETURNS AS OF FEBRUARY 29, 2004(1)
1 YEAR 5 YEARS SINCE INCEPTION INCEPTION DATE 6.43% 5.74% 6.67% 3/31/94
AVERAGE ANNUAL RETURNS AS OF MARCH 31, 2004(1)
1 YEAR 5 YEARS SINCE INCEPTION INCEPTION DATE 6.89% 5.69% 6.69% 3/31/94
Past performance is not predictive of future performance. Investment return and principal value of an investment will fluctuate so that an investor's shares upon redemption may be worth more or less than their original cost. The performance results do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. (1) Fee waivers and/or expense reimbursements reduced expenses for the Fund, without which performance would be lower. Waivers and/or reimbursements may be discontinued at any time. (2) The Lehman Brothers U.S. Aggregate Bond Index is composed of the Lehman Brothers Government/Corporate Bond Index and the Lehman Brothers Mortgage-Backed Securities Index. The Lehman Brothers U.S. Aggregate Bond Index includes U.S. Treasury and agency issues, corporate bond issues and mortgage-backed securities rated investment-grade or higher by Moody's Investors Service, Standard & Poor's Division of The McGraw-Hill Companies, Inc., or Fitch Investors' Service. Investors cannot invest directly in an index. 4 CREDIT SUISSE INSTITUTIONAL FIXED INCOME FUND SCHEDULE OF INVESTMENTS FEBRUARY 29, 2004 (UNAUDITED)
PAR RATINGS+ (000) (S&P / MOODY'S) MATURITY RATE% VALUE - --------- --------------- -------- ------- --------------- CORPORATE BONDS (32.7%) AEROSPACE & DEFENSE (0.6%) $ 400 Lockheed Martin Corp., Bonds (BBB , Baa2) 12/01/29 8.500 $ 536,429 121 Sequa Corp., Senior Notes (BB- , B1) 08/01/09 9.000 134,659 125 Sequa Corp., Series B, Senior Notes (BB- , B1) 04/01/08 8.875 138,437 --------------- 809,525 --------------- AUTOMOBILE MANUFACTURERS (0.3%) 275 Ford Motor Co., Global Notes (BBB- , Baa1) 07/16/31 7.450 277,052 95 General Motors Corp., Global Debentures (BBB , Baa1) 07/15/33 8.375 107,971 --------------- 385,023 --------------- AUTOMOBILE PARTS & EQUIPMENT (0.0%) 30 Collins & Aikman Products Corp., Company Guaranteed Notes (Callable 04/15/04 @ $100.00)! (B- , B3) 04/15/06 11.500 28,800 --------------- BUILDING MATERIALS (0.1%) 195 American Standard, Inc., Company Guaranteed Notes (BB+ , Ba2) 02/01/08 7.375 218,400 --------------- COMMERCIAL SERVICES (0.3%) 255 Erac USA Finance Co., Rule 144A, Notes++ (BBB+ , Baa1) 05/15/06 6.625 276,902 120 Iron Mountain, Inc., Company Guaranteed Notes (Callable 04/01/06 @ $104.31) (B , B3) 04/01/13 8.625 131,100 --------------- 408,002 --------------- COSMETICS/PERSONAL CARE (0.4%) 100 Armkel LLC, Global Senior Subordinated Notes (Callable 08/15/05 @ $104.75) (B , B2) 08/15/09 9.500 111,250 440 Procter & Gamble Co., Bonds (AA- , Aa3) 02/01/34 5.500 441,580 --------------- 552,830 --------------- DIVERSIFIED FINANCIALS (10.4%) 645 Bear Stearns Companies, Inc., Global Notes (A , A1) 10/28/10 4.500 659,921 495 Capital One Bank, Subordinated Notes (BB+ , Baa3) 06/13/13 6.500 539,776 475 CIT Group, Inc., Global Senior Notes (A , A2) 04/02/12 7.750 571,803 245 Countrywide Home Loans, Inc., Global Company Guaranteed Notes (A , A3) 06/15/04 6.850 248,852 435 Countrywide Home Loans, Inc., Global Notes (A , A3) 12/19/07 4.250 454,166 390 Countrywide Home Loans, Inc., Series MTN, Global Notes (A , A3) 05/21/08 3.250 389,060 500 FGIC Corp., Rule 144A, Senior Notes++ (AA , Aa2) 01/15/34 6.000 517,499 525 FMR Corp., Rule 144A, Notes++ (AA , Aa3) 03/01/13 4.750 531,226 965 Ford Motor Credit Co., Global Bonds (BBB- , A3) 02/01/11 7.375 1,047,733 390 Ford Motor Credit Co., Global Notes (BBB- , A3) 02/01/06 6.875 415,493 945 General Electric Capital Corp., Series MTNA, Global Notes! (AAA , Aaa) 06/15/12 6.000 1,045,426 500 General Motors Acceptance Corp., Global Bonds (BBB , A3) 11/01/31 8.000 552,473 560 General Motors Acceptance Corp., Notes (BBB , A3) 12/10/07 4.375 568,800 375 Goldman Sachs Group, Inc., Global Bonds (A+ , Aa3) 01/15/11 6.875 433,253 855 Goldman Sachs Group, Inc., Global Notes (A+ , Aa3) 04/01/13 5.250 881,929 1,170 Household Finance Corp., Global Notes (A , A1) 12/15/08 4.125 1,198,426 345 Household Finance Corp., Global Notes (A , A1) 07/15/10 8.000 418,294 490 Lehman Brothers Holdings, Inc., Series MTNG, Global Notes (A , A1) 11/30/10 4.375 496,394 380 MBNA America Bank, Rule 144A, Subordinated Notes++ (BBB , Baa2) 03/15/08 6.750 427,825 640 Merrill Lynch & Company, Inc., Series MTNO, Senior Unsubordinated Notes (A+ , Aa3) 02/03/14 5.000 648,215 825 Morgan Stanley, Global Notes (A+ , Aa3) 03/01/13 5.300 861,854
See Accompanying Notes to Financial Statements. 5
PAR RATINGS+ (000) (S&P / MOODY'S) MATURITY RATE% VALUE - --------- --------------- -------- ------- --------------- DIVERSIFIED FINANCIALS $ 200 PCA LLC/PCA Finance Corp., Global Senior Notes (B- , B3) 08/01/09 11.875 $ 223,000 630 SLM Corp., Series MTNA, Notes (A , A2) 01/15/09 4.000 643,711 145 Textron Financial Corp., Global Notes (A- , A3) 06/01/07 5.875 159,062 130 Textron Financial Corp., Series MTNE, Notes# (A- , A3) 10/06/06 1.500 130,610 --------------- 14,064,801 --------------- ELECTRIC (5.2%) 510 American Electric Power Company, Inc., Series A, Global Notes (BBB , Baa3) 05/15/06 6.125 551,217 820 Cilcorp, Inc., Bonds (BBB+ , Baa2) 10/15/29 9.375 1,141,646 510 Cincinnati Gas & Electric Co., Notes (BBB , Baa1) 09/15/12 5.700 546,705 90 CMS Energy Corp., Senior Notes! (B+ , B3) 01/15/09 7.500 93,262 480 Consolidated Edison Company of New York, Debentures (A , A1) 02/01/13 4.875 494,227 200 Constellation Energy Group, Inc., Notes (BBB+ , Baa1) 04/01/07 6.350 220,140 240 Constellation Energy Group, Inc., Notes (BBB+ , Baa1) 04/01/12 7.000 275,970 260 Dominion Resources, Inc., Series B, Global Senior Notes (BBB+ , Baa1) 07/15/05 7.625 280,240 280 Duke Energy Corp., First Mortgage Notes (BBB+ , A3) 10/01/15 5.300 288,696 185 Energy East Corp., Notes (BBB , Baa2) 06/15/12 6.750 209,523 319 FPL Group Capital, Inc., Company Guaranteed Notes (A- , A2) 09/15/06 7.625 359,348 380 FPL Group Capital, Inc., Notes (A- , A2) 04/11/06 3.250 388,239 490 Oncor Electric Delivery Co., Global Secured Notes (BBB , Baa1) 05/01/32 7.000 559,385 350 Pinnacle West Capital Corp., Notes (Callable 11/01/04 @ $100.00)# (BBB- , Baa2) 11/01/05 1.931 350,299 380 Progress Energy, Inc., Senior Notes (BBB- , Baa2) 03/01/06 6.750 412,601 320 PSE&G Power LLC, Global Company Guaranteed Notes (BBB , Baa1) 06/01/12 6.950 367,439 345 Public Service Company of Colorado, Global Collateral Trust (BBB+ , Baa1) 10/01/12 7.875 427,453 --------------- 6,966,390 --------------- ELECTRONICS (0.1%) 105 Sanmina-Sci Corp., Global Company Guaranteed Notes (Callable 01/15/07 @ $105.19) (BB- , Ba2) 01/15/10 10.375 122,850 --------------- ENTERTAINMENT (0.5%) 100 Horseshoe Gaming Holding Corp., Series B, Company Guaranteed Notes (Callable 05/15/04 @ $104.31) (B+ , B2) 05/15/09 8.625 105,375 50 Intrawest Corp., Global Company Guaranteed Notes (Callable 02/01/05 @ $105.25) (B+ , B1) 02/01/10 10.500 55,250 100 Isle of Capri Casinos, Inc., Company Guaranteed Notes (Callable 04/15/04 @ $104.38) (B , B2) 04/15/09 8.750 105,750 145 Kerzner International, Ltd., Global Company Guaranteed Notes (Callable 08/15/06 @ $104.44) (B+ , B2) 08/15/11 8.875 160,950 85 Mohegan Tribal Gaming, Global Senior Subordinated Notes (Callable 07/01/06 @ $104.19) (BB- , Ba3) 07/01/11 8.375 94,138 100 Penn National Gaming, Inc., Company Guaranteed Notes (Callable 03/15/06 @ $104.44) (B , B3) 03/15/10 8.875 108,000 --------------- 629,463 --------------- ENVIRONMENTAL CONTROL (0.7%) 6 Allied Waste North America, Series B, Company Guaranteed Notes (Callable 01/01/05 @ $102.63) (BB- , Ba3) 01/01/09 7.875 6,266 350 Waste Management, Inc., Global Company Guaranteed Notes (BBB , Baa3) 05/15/32 7.750 426,412 125 Waste Management, Inc., Notes (BBB , Baa3) 04/30/04 8.000 126,139 375 Waste Management, Inc., Senior Notes (BBB , Baa3) 08/01/10 7.375 439,553 --------------- 998,370 ---------------
See Accompanying Notes to Financial Statements. 6
PAR RATINGS+ (000) (S&P / MOODY'S) MATURITY RATE% VALUE - --------- --------------- -------- ------- --------------- FOOD (1.8%) $ 310 ConAgra Foods, Inc., Notes (BBB+ , Baa1) 09/15/11 6.750 $ 354,779 290 ConAgra Foods, Inc., Notes (BBB+ , Baa1) 09/15/30 8.250 377,725 450 General Mills, Inc., Global Notes (BBB+ , Baa2) 02/15/12 6.000 491,605 310 Kellogg Co., Global Senior Notes (BBB , Baa2) 06/01/08 2.875 305,235 555 Kellogg Co., Series B, Global Notes (BBB , Baa2) 04/01/11 6.600 637,181 200 Land O' Lakes, Inc., Global Senior Notes (Callable 11/15/06 @ $104.38)! (B- , B3) 11/15/11 8.750 174,500 70 Premier International Foods PLC, Yankee Senior Notes (Callable 09/01/04 @ $106.00) (B- , B3) 09/01/09 12.000 76,300 --------------- 2,417,325 --------------- FOREST PRODUCTS, PAPER (0.1%) 105 Appleton Papers, Inc., Series B, Global Company Guaranteed Notes (Callable 12/15/05 @ $106.25) (B+ , B3) 12/15/08 12.500 119,963 --------------- GAS (0.9%) 515 KeySpan Corp., Senior Notes (A, A3) 11/15/30 8.000 669,871 520 Sempra Energy, Notes (BBB+ , Baa1) 12/01/05 6.950 561,404 --------------- 1,231,275 --------------- HEALTHCARE PRODUCTS (0.4%) 550 Baxter International, Inc., Notes (A- , A3) 05/01/07 5.250 590,187 --------------- HEALTHCARE SERVICES (0.1%) 100 Extendicare Health Services, Inc., Company Guaranteed Notes (Callable 12/15/04 @ $101.56) (B- , B3) 12/15/07 9.350 104,000 --------------- HOME BUILDERS (0.3%) 175 KB Home, Senior Subordinated Notes (Callable 02/15/06 @ $104.75) (BB- , Ba2) 02/15/11 9.500 197,750 170 Ryland Group, Senior Notes (Callable 09/01/05 @ $104.88) (BBB- , Ba1) 09/01/10 9.750 193,800 --------------- 391,550 --------------- HOUSEHOLD PRODUCTS (0.1%) 100 Jarden Corp., Global Company Guaranteed Notes (Callable 05/01/07 @ $104.88) (B- , B2) 05/01/12 9.750 111,500 --------------- INSURANCE (1.6%) 1,515 American International Group, Inc., Rule 144A, Notes++,# (AAA , Aaa) 05/15/13 4.375 1,473,153 730 MetLife, Inc., Senior Notes (A , A2) 11/24/13 5.000 744,167 --------------- 2,217,320 --------------- IRON & STEEL (0.1%) 110 AK Steel Corp., Company Guaranteed Notes (Callable 02/15/05 @ $102.65)! (B+ , B3) 02/15/09 7.875 97,900 --------------- LEISURE TIME (0.1%) 100 Hard Rock Hotel, Inc., Global Notes (Callable 06/01/08 @ $104.44) (B , B3) 06/01/13 8.875 108,000 --------------- LODGING (0.7%) 60 Ameristar Casinos, Inc., Global Company Guaranteed Notes (Callable 02/15/06 @ $105.38) (B , B2) 02/15/09 10.750 69,300 60 Aztar Corp., Senior Subordinated Notes (Callable 05/15/04 @ $102.96) (B+ , Ba3) 05/15/07 8.875 62,400 150 MGM Mirage, Inc., Company Guaranteed Notes! (BB- , Ba2) 02/01/11 8.375 173,625
See Accompanying Notes to Financial Statements. 7
PAR RATINGS+ (000) (S&P / MOODY'S) MATURITY RATE% VALUE - --------- --------------- -------- ------- --------------- LODGING $ 150 Station Casinos, Inc., Senior Subordinated Notes (Callable 07/01/05 @ $103.70) (B+ , B1) 07/01/10 9.875 $ 171,375 780 Windsor Woodmont Black Hawk, Series B, First Mortgage (Callable 03/15/04 @ $104.33)@ (NR , NR) 03/15/05 13.000 512,850 --------------- 989,550 --------------- MEDIA (3.1%) 455 AT&T Broadband Corp., Global Company Guaranteed Notes (BBB , Baa3) 03/15/13 8.375 562,747 710 Comcast Cable Communications, Inc., Senior Notes (BBB , Baa3) 01/30/11 6.750 805,990 240 Cox Communications, Inc., Notes (BBB , Baa2) 06/15/05 6.875 255,022 100 CSC Holdings, Inc., Series B, Senior Notes (BB- , B1) 04/01/11 7.625 108,500 400 Liberty Media Corp., Global Senior Notes# (BBB- , Baa3) 09/17/06 2.610 405,567 100 Mediacom LLC/Capital Corp., Senior Notes (Callable 01/15/06 @ $104.75) (B+ , B2) 01/15/13 9.500 102,000 280 News America Holdings, Inc., Company Guaranteed Notes (BBB- , Baa3) 02/01/13 9.250 366,154 515 News America Holdings, Inc., Debentures (BBB- , Baa3) 08/10/18 8.250 655,564 50 Rogers Cable, Inc., Global Secured Notes++ (BBB- , Ba2) 06/15/13 6.250 52,125 300 Thomson Corp., Global Notes (A- , A3) 01/05/12 6.200 337,485 470 Time Warner, Inc., Global Company Guaranteed Notes (BBB+ , Baa1) 04/15/31 7.625 548,632 --------------- 4,199,786 --------------- MISCELLANEOUS MANUFACTURING (0.5%) 100 Building Materials Corp., Company Guaranteed Notes (B+ , B2) 12/01/08 8.000 100,500 565 Textron, Inc., Senior Notes (A- , A3) 08/01/10 4.500 583,512 --------------- 684,012 --------------- OIL & GAS (0.2%) 112 Chesapeake Energy Corp., Senior Notes (Callable 01/15/09 @ $103.44) (BB- , Ba3) 01/15/16 6.875 116,340 70 Forest Oil Corp., Global Company Guaranteed Notes (Callable 05/01/07 @ $103.88) (BB , Ba3) 05/01/14 7.750 74,200 100 Parker Drilling Co., Series B, Company Guaranteed Notes (Callable 11/15/04 @ $105.06)! (B+ , B2) 11/15/09 10.125 109,500 --------------- 300,040 --------------- PACKAGING & CONTAINERS (0.6%) 100 Owens-Brockway Glass Containers, Global Company Guaranteed Notes (Callable 02/15/06 @ $104.44) (BB- , B2) 02/15/09 8.875 109,250 100 Owens-Illinois, Inc., Senior Notes (B , Caa1) 05/15/08 7.350 100,750 155 Sealed Air Corp., Rule 144A, Notes++ (BBB , Baa3) 05/15/09 6.950 177,591 255 Sealed Air Corp., Rule 144A, Senior Notes++ (BBB , Baa3) 04/15/08 5.375 271,913 100 Stone Container Corp., Global Senior Notes (Callable 07/01/07 @ $104.19) (B , B2) 07/01/12 8.375 109,125 --------------- 768,629 --------------- PHARMACEUTICALS (0.0%) 30 NBTY, Inc., Series B, Senior Subordinated Notes (Callable 09/15/04 @ $101.44) (B+ , B1) 09/15/07 8.625 30,975 --------------- PIPELINES (0.1%) 90 Western Gas Resources, Inc., Company Guaranteed Notes (Callable 06/15/04 @ $105.00) (BB- , Ba3) 06/15/09 10.000 96,638 --------------- REAL ESTATE (0.4%) 495 EOP Operating LP, Senior Notes (BBB+ , Baa1) 02/15/05 6.625 517,617 ---------------
See Accompanying Notes to Financial Statements. 8
PAR RATINGS+ (000) (S&P / MOODY'S) MATURITY RATE% VALUE - --------- --------------- -------- ------- --------------- RETAIL (0.8%) $ 175 Leslie's Poolmart, Series B, Senior Notes (Callable 07/15/05 @$102.59) (B- , B2) 07/15/08 10.375 $ 174,344 605 Target Corp., Notes (A+ , A2) 08/15/10 7.500 724,865 120 Yum! Brands, Inc., Senior Notes (BB+ , Baa3) 07/01/12 7.700 141,000 --------------- 1,040,209 --------------- SAVINGS & LOANS (0.1%) 100 Sovereign Bancorp, Inc., Senior Notes (BBB- , Ba1) 11/15/06 10.500 119,632 --------------- TELECOMMUNICATIONS (2.1%) 705 AT&T Corp., Global Senior Notes# (BBB , Baa2) 11/15/31 8.750 833,706 115 AT&T Wireless Services, Inc., Global Senior Notes (BBB , Baa2) 03/01/31 8.750 147,797 155 Insight Midwest/Insight Capital Corp., Global Senior Notes (Callable 11/01/05 @ $105.25) (B+ , B2) 11/01/10 10.500 168,175 100 Insight Midwest/Insight Capital Corp., Senior Notes (Callable 10/01/04 @ $104.88)! (B+ , B2) 10/01/09 9.750 105,750 80 Rogers Wireless Communications, Inc., Global Secured Notes (BB+ , Ba3) 05/01/11 9.625 98,000 180 Sprint Capital Corp., Global Company Guaranteed Notes (BBB- , Baa3) 03/15/32 8.750 224,064 380 Verizon Global Funding Corp., Global Notes (A+ , A2) 06/15/12 6.875 434,899 300 Verizon Global Funding Corp., Global Notes (A+ , A2) 12/01/30 7.750 360,934 420 Verizon Wireless Capital LLC, Global Notes (A+ , A3) 12/15/06 5.375 451,656 --------------- 2,824,981 --------------- TOTAL CORPORATE BONDS (Cost $41,577,435) 44,145,543 --------------- ASSET BACKED SECURITIES (14.5%) 2,500 Aesop Funding II LLC, Series 2003-2A Class A2# (AAA , Aaa) 06/20/07 1.341 2,508,334 1,641 Ameriquest Mortgage Securities, Inc., Series 2003-AR2, Class A4# (AAA , Aaa) 05/25/33 1.440 1,644,459 1,610 Citibank Credit Card Issuance Trust, Series 2002-A9, Class A9# (AAA , Aaa) 12/17/07 1.210 1,611,333 967 Conseco Finance, Series 2000-D, Class A4 (AAA , Aaa) 12/15/25 8.170 1,001,591 634 Contimortgage Home Equity Loan Trust, Series 1996-4, Class A8 (AAA , Aaa) 01/15/28 7.220 636,935 1,158 Countrywide Home Equity Loan Trust, Series 2002-C, Class A# (AAA , Aaa) 05/15/28 1.334 1,159,643 1,610 Discover Card Master Trust I, Series 2003-4, Class A1# (AAA , Aaa) 05/15/11 1.204 1,614,025 1,610 First USA Credit Card Master Trust, Series 2001-1, Class A# (AAA , Aaa) 09/19/08 1.242 1,614,635 146 Green Tree Recreational, Equipment and Consumer Trust, Series 1997-C, Class A1 (AAA , NR) 02/15/18 6.490 146,191 853 Greenpoint Home Equity Loan Trust, Series 2003-1, Class A# (AAA , Aaa) 04/15/29 1.364 853,577 1,610 MBNA Credit Card Master Note Trust, Series 2002-A4, Class A4# (AAA , Aaa) 08/17/09 1.204 1,614,362 2,000 MBNA Master Credit Card Trust, Series 1998-G, Class A# (AAA , Aaa) 02/17/09 1.224 2,006,278 1,610 SLM Student Loan Trust, Series 2003-1, Class A2# (AAA , Aaa) 06/17/13 1.210 1,611,289 820 UCFC Home Equity Loan Trust, Series 1998-A, Class A7 (AAA , Aaa) 07/15/29 6.870 859,973 690 Vanderbilt Mortgage Finance, Series 1998-C, Class 1B1 (BBB , NR) 02/07/15 6.970 706,941 --------------- TOTAL ASSET BACKED SECURITIES (Cost $19,497,694) 19,589,566 ---------------
See Accompanying Notes to Financial Statements. 9
PAR RATINGS+ (000) (S&P / MOODY'S) MATURITY RATE% VALUE - --------- --------------- -------- ------- --------------- MORTGAGE-BACKED SECURITIES (49.6%) $ 855 Fannie Mae Global Bonds^^ (AAA , Aaa) 11/15/30 6.625 $ 1,006,876 3,555 Fannie Mae Global Notes^^ (AAA , Aaa) 02/15/09 3.250 3,549,785 1,335 Fannie Mae Global Notes^^ (AAA , Aaa) 05/15/11 6.000 1,506,534 3,050 Fannie Mae Global Notes^^ (AAA , Aaa) 03/15/12 6.125 3,466,609 146 Fannie Mae Pool #077774 (AAA , Aaa) 01/01/10 10.000 163,106 2 Fannie Mae Pool #124032 (AAA , Aaa) 02/01/05 10.000 2,460 482 Fannie Mae Pool #254702 (AAA , Aaa) 03/01/33 7.000 515,785 10 Fannie Mae Pool #531072 (AAA , Aaa) 01/01/30 6.000 10,056 116 Fannie Mae Pool #588970 (AAA , Aaa) 06/01/31 7.000 123,945 303 Fannie Mae Pool #656862 (AAA , Aaa) 04/01/33 6.000 315,584 211 Fannie Mae Pool #662830 (AAA , Aaa) 10/01/32 7.500 226,434 1,955 Fannie Mae Pool #667742^^ (AAA , Aaa) 04/01/33 6.000 2,037,740 1,142 Fannie Mae Pool #674585^^ (AAA , Aaa) 12/01/32 6.500 1,208,086 307 Fannie Mae Pool #678886 (AAA , Aaa) 01/01/33 7.000 328,248 430 Fannie Mae Pool #685447 (AAA , Aaa) 02/01/33 7.000 459,727 1,696 Fannie Mae Pool #702130^^ (AAA , Aaa) 03/01/33 7.000 1,805,156 1,490 Fannie Mae Pool #703443 (AAA , Aaa) 05/01/18 5.000 1,532,882 1,483 Fannie Mae Pool #703444^^ (AAA , Aaa) 05/01/18 5.000 1,524,808 247 Fannie Mae Pool #703598 (AAA , Aaa) 05/01/18 5.500 257,776 326 Fannie Mae Pool #704142 (AAA , Aaa) 05/01/18 5.500 339,927 240 Fannie Mae Pool #705651 (AAA , Aaa) 06/01/18 5.500 249,970 246 Fannie Mae Pool #709515 (AAA , Aaa) 05/01/18 5.500 256,662 483 Fannie Mae Pool #741351 (AAA , Aaa) 12/01/33 5.500 494,349 629 Fannie Mae Pool #748560 (AAA , Aaa) 01/01/34 5.500 643,762 1,365 Fannie Mae Pool #748643#, ^^ (AAA , Aaa) 09/01/33 4.190 1,392,296 465 Fannie Mae Pool #757490 (AAA , Aaa) 01/01/34 5.500 475,727 829 Fannie Mae Pool #759766 (AAA , Aaa) 02/01/34 5.500 849,377 975 Fannie Mae Pool #763847 (AAA , Aaa) 02/01/34 5.500 998,547 1,044 Fannie Mae Pool #769201^^ (AAA , Aaa) 01/01/34 6.500 1,098,934 29 Federal Home Loan Mortgage Corp. Series Gold (AAA , Aaa) 12/01/09 7.000 31,064 2 Federal National Mortgage Association, Series 1991-165, Class M (AAA , Aaa) 12/25/21 8.250 1,659 855 FHLMC TBA (AAA , Aaa) 03/01/19 5.000 877,710 1,990 FNMA TBA (AAA , Aaa) 03/01/19 4.500 2,009,279 1,530 FNMA TBA (AAA , Aaa) 03/01/19 5.500 1,594,069 2,540 FNMA TBA (AAA , Aaa) 03/01/19 6.000 2,676,525 3,435 FNMA TBA (AAA , Aaa) 03/01/34 5.000 3,441,441 2,905 FNMA TBA (AAA , Aaa) 03/01/34 5.500 2,972,178 5,230 FNMA TBA (AAA , Aaa) 03/01/34 6.000 5,445,737 3,955 FNMA TBA (AAA , Aaa) 03/01/34 6.500 4,160,166 2,550 Freddie Mac Discount Notes^^ (AAA , Aaa) 11/04/04 0.010 2,531,204 4,105 Freddie Mac Global Notes^^ (AAA , Aaa) 11/15/13 4.875 4,257,394 1,370 Freddie Mac Pool #1B1275#, ^^ (AAA , Aaa) 10/01/33 4.232 1,399,193 654 Freddie Mac Pool #B11354 (AAA , Aaa) 12/01/18 5.000 672,462 0 Ginnie Mae Pool #003322(1) (AAA , Aaa) 11/15/04 9.000 16 0 Ginnie Mae Pool #004923(1) (AAA , Aaa) 12/15/04 9.000 18 0 Ginnie Mae Pool #009827(1) (AAA , Aaa) 04/15/06 8.250 73 1 Ginnie Mae Pool #112986 (AAA , Aaa) 07/15/14 13.500 821 14 Ginnie Mae Pool #210216 (AAA , Aaa) 04/15/17 8.000 15,484 122 Ginnie Mae Pool #312635 (AAA , Aaa) 08/15/21 9.000 137,592 349 Ginnie Mae Pool #598105 (AAA , Aaa) 03/15/33 6.000 364,945 409 Ginnie Mae Pool #598128 (AAA , Aaa) 03/15/33 6.000 427,640 311 Ginnie Mae Pool #598145 (AAA , Aaa) 03/15/33 6.000 324,872 200 Ginnie Mae Pool #600025 (AAA , Aaa) 03/15/33 6.000 208,966 168 Ginnie Mae Pool #604170 (AAA , Aaa) 04/15/33 6.500 177,531
See Accompanying Notes to Financial Statements. 10
PAR RATINGS+ (000) (S&P / MOODY'S) MATURITY RATE% VALUE - --------- --------------- -------- ------- --------------- MORTGAGE BACKED SECURITIES $ 325 Ginnie Mae Pool #604205 (AAA , Aaa) 04/15/33 6.500 $ 343,220 1,460 GNMA TBA (AAA , Aaa) 03/01/34 5.500 1,499,237 130 GNMA TBA (AAA , Aaa) 03/01/34 6.000 135,769 1,970 GNMA TBA (AAA , Aaa) 03/01/34 6.500 2,079,581 539 Master Adjustable Rate Mortgages Trust, Series 2003-6, Class 7A2# (AAA , Aaa) 12/25/33 3.862 544,699 549 Master Adjustable Rate Mortgages Trust, Series 2003-6, Class 8A1# (AAA , Aaa) 12/25/33 4.587 557,123 1,050 Salomon Brothers Mortgage Securities VII, Series 1997-TZH, Class B++ (NR , Aa1) 03/25/25 7.491 1,111,092 --------------- TOTAL MORTGAGE-BACKED SECURITIES (Cost $66,377,726) 66,839,908 --------------- FOREIGN BONDS (4.5%) BANKS (0.8%) 940 Royal Bank of Scotland Group PLC, Series 3, Perpetual Global Bonds (Callable 12/31/05 @ $100.00) (United Kingdom) (A , A1) 11/29/49 7.816 1,036,171 --------------- ELECTRIC (0.2%) 250 Compania Nacional de Transmision Electrica SA, Global Senior Notes (Chile) (A- , Baa1) 04/15/11 7.875 294,807 --------------- HOLDING COMPANIES-DIVERSIFIED (0.5%) 645 Pacificorp Australia, Rule 144A, Bonds (Australia)++ (AAA , Aaa) 01/15/08 6.150 705,816 --------------- MINING (0.3%) 335 Corporacion Nacional del Cobre - Codelco, Rule 144A, Notes (Chile)++ (A , A2) 10/15/13 5.500 349,830 --------------- OIL & GAS (0.7%) 535 Norsk Hydro ASA, Yankee Debentures (Norway) (A , A2) 06/15/23 7.750 667,621 190 Petroleos Mexicanos, Series REGS, Euro Company Guaranteed Notes (Mexico) (BB , Ba1) 06/01/07 9.000 221,986 --------------- 889,607 --------------- SOVEREIGN (1.7%) 470 Export-Import Bank of Korea, Rule 144A, Notes (Korea)++ (A- , A3) 02/10/14 5.250 471,716 705 Government of Russia, Series V, Debentures (Russia) (BB+ , Ba2) 05/14/08 3.000 641,550 85 Republic of Philippines, Series B, Restructured Debt, Foreign Government Guaranteed (Philippines)# (BB , Ba2) 12/01/17 6.500 84,348 330 Republic of Poland, Global Unsubordinated Notes (Poland) (BBB+ , A2) 01/15/14 5.250 339,075 175 United Mexican States, Global Bonds (Mexico) (BBB- , Baa2) 09/15/16 11.375 259,875 495 United Mexican States, Global Notes (Mexico)# (BBB- , Baa2) 01/13/09 1.840 499,207 --------------- 2,295,771 --------------- TELECOMMUNICATIONS (0.3%) 385 Deutsche Telekom International Finance, Global Company Guaranteed Notes (Netherlands) # (BBB+ , Baa3) 06/15/05 8.250 415,971 --------------- TOTAL FOREIGN BONDS (Cost $5,768,002) 5,987,973 --------------- UNITED STATES TREASURY OBLIGATIONS (0.3%) 280 United States Treasury Bonds (AAA , Aaa) 02/15/31 5.375 301,810 35 United States Treasury Notes (AAA , Aaa) 08/15/11 5.000 38,214 --------------- TOTAL UNITED STATES TREASURY OBLIGATIONS (Cost $335,202) 340,024 ---------------
See Accompanying Notes to Financial Statements. 11
PAR (000) VALUE - --------- --------------- COMMON STOCKS (0.2%) FOOD (0.0%) 836 Archibald Candy Corp.*,^ $ 20,900 --------------- OIL & GAS SERVICES (0.2%) 5,252 Southwest Royalties, Inc.*, ^ 183,820 --------------- TOTAL COMMON STOCKS (Cost $244,293) 204,720 --------------- PREFERRED STOCK (0.3%) TELECOMMUNICATIONS (0.3%) 350 Centaur Funding Corp., Series B, Rule 144A++(Cost $371,652) 445,813 --------------- WARRANTS (0.0%) BUILDING MATERIALS (0.0%) 240 Dayton Superior Corp., Rule 144A, strike $0.01, expires June 2009*,++ 2 --------------- TELECOMMUNICATIONS (0.0%) 130 GT Group Telecom, Inc., Rule 144A, strike $0.00 expires February 2010*,++ 97 50 IWO Holdings, Inc., Rule 144A, strike $7.00, expires January 2011*,++ 1 --------------- 98 --------------- TOTAL WARRANTS (Cost $21,326) 100 --------------- PAR RATINGS+ (000) (S&P / MOODY'S) MATURITY RATE% VALUE - --------- --------------- -------- ------- --------------- SHORT-TERM U.S. TREASURY OBLIGATION (2.3%) UNITED STATES TREASURY BILLS (2.3%) $ 3,150 United States Treasury Bills(2) (Cost $3,145,343) (AAA , Aaa) 04/29/04 0.890 3,145,360 --------------- SHORT-TERM INVESTMENTS (14.7%) 1,692 Deutsche Bank Tri-Party Repurchase Agreement (Agreement dated 2/27/04, to be repurchased at $1,727,231, collateralized by $1,365,000 Federal Home Loan Mortgage Corporation 3.05% due 1/19/07 and $342,706 Federal National Mortgage Association 2.50% due 5/20/08. Market Value of collateral is $1,733,909)~ 03/01/04 1.050 1,691,553 18,172 State Street Bank and Trust Co. Euro Time Deposit(3) 03/01/04 0.750 18,172,000 --------------- TOTAL SHORT-TERM INVESTMENTS (Cost $19,863,553) 19,863,553 --------------- CONTRACTS -------------- OPTIONS PURCHASED (0.1%) PUT OPTIONS (0.0%) S&P 500 Index expiring March 20, 2004 36 29,016 --------------- CALL OPTIONS (0.1%) S&P 500 Index expiring June 19, 2004 146 110,376 --------------- TOTAL OUTSTANDING OPTIONS PURCHASED (Cost $226,666) 139,392 --------------- TOTAL INVESTMENTS AT VALUE (119.2%) (Cost $157,428,892) 160,701,952 LIABILITIES IN EXCESS OF OTHER ASSETS (-19.2%) (25,858,313) --------------- NET ASSETS (100.0%) $ 134,843,639 ===============
See Accompanying Notes to Financial Statements. 12 OPEN OPTION CONTRACTS WRITTEN
NUMBER OF EXERCISE EXPIRATION NAME OF ISSUER CONTRACTS PRICE DATE VALUE - -------------- --------- -------- ----------- ---------- S&P 500 Index Call Option 62 $ 2.80 3/19/04 $ 6,820 S&P 500 Index Call Option 36 25.50 3/19/04 78,840 S&P 500 Index Put Option 62 4.00 3/19/04 9,918 S&P 500 Index Put Option 73 11.50 6/19/04 49,640 ---------- $ 145,218 ==========
+ Credit ratings given by the Standard & Poor's Division of The McGraw-Hill Companies, Inc. ("S&P") and Moody's Investors Service, Inc. ("Moody's") are unaudited. # Variable rate obligations -- The interest rate shown is the rate as of February 29, 2004. ++ Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At February 29, 2004, these securities amounted to a value of $6,812,601 or 5.1% of net assets. @ Security in default. * Non-income producing security. ! Security or portion thereof is out on loan. ~ Represents security purchased with cash collateral received for securities on loan. ^^ Collateral segregated for TBA securities. ^ Not readily marketable security; security is valued at fair value as determined in good faith by the Board of Directors. (1) Par value of security held is less than $1,000. (2) A portion of the security is pledged as collateral for options written. (3) Collateral segregated for futures contracts. INVESTMENT ABBREVIATIONS NR Not Rated TBA To Be Announced
See Accompanying Notes to Financial Statements. 13 CREDIT SUISSE INSTITUTIONAL HIGH YIELD FUND SEMIANNUAL INVESTMENT ADVISER'S REPORT (UNAUDITED) March 23, 2004 Dear Shareholder: We are writing to report on the results of the Credit Suisse Institutional High Yield Fund (the "Fund") for the fiscal half-year ended February 29, 2004. At February 29, 2004, the net asset value ("NAV") per share of the Fund was $10.22, compared to an NAV per share of $10.26 on August 31, 2003. Assuming the reinvestment of distributions totaling $1.23865 per share, the Fund's total return was 12.05%(1). By comparison, the Citigroup High-Yield Market Index (CHYMI)(2) gained 10.85% during the same period. The Fund's performance also exceeded that of many of its peers. As represented by the Lipper High Yield Bond Funds Index(3), the broad universe of high yield funds returned 10.09%. The high yield market enjoyed a solidly upward trend during almost the entire fiscal half-year, rising virtually without interruption through mid-January, only to falter a bit and then stabilize in February. In the process, it also decisively outperformed most subcategories of investment-grade fixed income. The underlying economic environment continued to strengthen, with a variety of statistical indicators reinforcing the widespread sense that the economy's recovery was building up a full head of steam. This worked in high yield's favor, as perceptions about high yield issuers' ability to generate the revenues and cash flow needed to service their debt--and, therefore, perceptions about their creditworthiness and debt valuations--improved accordingly. Monetary policy remained supportive, furthermore. The Federal Reserve chose to leave the fed funds rate unchanged at the historically low level of 1.00%, which served to keep yield-hungry investors away from money market funds and draw them to the high yield market. An additional plus was that enthusiasm for relatively risky financial assets was high. Given the upbeat prospects for corporate profitability and the accommodative interest-rate climate, investors were active buyers of comparatively risky assets such as high yield and equities. All of the above added up to healthy demand for high yield. Demand was so healthy, in fact, that it not only helped to encourage many high yield issuers to sell new debt [note: annual new issuance nearly reached an all-time high in 2003], but also was more than enough to absorb the resulting flood of new supply. The Fund outperformed its CHYMI benchmark primarily due to our positioning of the portfolio in certain industry sectors. Relative returns were especially good in four sectors in which we enjoyed the twin benefits of an overweight allocation and effective security selection. - - Cable television: we owned the bonds of two lower-tier companies whose operations showed notable improvement. - - Health care facilities/supplies: we did not own the bonds of the sector's biggest company, which suffered from deteriorating operating results and an ongoing federal investigation. - - Wireless telecommunications: we held the securities of a number of regional service providers affiliated with one of the top national providers. These holdings fared well not only as the regional providers' operating results picked up, but also as part of a rally throughout the wireless sector in response to the news that one of the biggest wireless companies had put itself up for sale. - - Competitive local-exchange telecom service providers: we held some of the best-performing names in a sector buoyed by its first meaningful issuance of new debt in some time. 14 The least favorable contributions to the Fund's overall return came from our exposure to energy traders, utilities and diversified telecom, each of which performed either better than, or in line with, the benchmark. We maintained an underweight stance in all of them because we felt that their sector-specific fundamentals were generally unencouraging. Sincerely yours, Credit Suisse High Yield Management Team Richard J. Lindquist, CFA, Managing Director Misia K. Dudley, Director Philip L. Schantz, Director Mary Ann Thomas, CFA, Director John M. Tobin, CFA, Director John F. Dessauer, CFA, Vice President Michael J. Dugan, Vice President NOTE: HIGH YIELD BONDS ARE LOWER-QUALITY BONDS ALSO KNOWN AS "JUNK BONDS." SUCH BONDS ENTAIL GREATER RISKS THAN THOSE FOUND IN HIGHER-RATED SECURITIES. IN ADDITION TO HISTORICAL INFORMATION, THIS REPORT CONTAINS FORWARD-LOOKING STATEMENTS, WHICH MAY CONCERN, AMONG OTHER THINGS, DOMESTIC AND FOREIGN MARKET, INDUSTRY AND ECONOMIC TRENDS AND DEVELOPMENTS AND GOVERNMENT REGULATION AND THEIR POTENTIAL IMPACT ON THE FUND'S INVESTMENT PORTFOLIO. THESE STATEMENTS ARE SUBJECT TO RISKS AND UNCERTAINTIES AND ACTUAL TRENDS, DEVELOPMENTS AND REGULATIONS IN THE FUTURE, AND THEIR IMPACT ON THE FUND COULD BE MATERIALLY DIFFERENT FROM THOSE PROJECTED, ANTICIPATED OR IMPLIED. THE FUND HAS NO OBLIGATION TO UPDATE OR REVISE FORWARD-LOOKING STATEMENTS. 15 AVERAGE ANNUAL RETURNS AS OF FEBRUARY 29, 2004(1)
1 YEAR 5 YEARS SINCE INCEPTION INCEPTION DATE 23.56% 3.56% 5.17% 2/26/93
AVERAGE ANNUAL RETURNS AS OF MARCH 31, 2004(1)
1 YEAR 5 YEARS SINCE INCEPTION INCEPTION DATE 21.12% 3.27% 6.49% 2/26/93
Past performance is not predictive of future performance. Investment return and principal value of an investment will fluctuate so that an investor's shares upon redemption may be worth more or less than their original cost. The performance results do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. (1) Fee waivers and/or expense reimbursements reduced expenses for the Fund, without which performance would be lower. Waivers and/or reimbursements may be discontinued at any time. (2) The Citigroup High-Yield Market Index is a broad-based, unmanaged index of high yield securities that is compiled by Citigroup Global Markets Inc. Its name was changed from the Salomon Smith Barney High-Yield Market Index effective April 7, 2003. Investors cannot invest directly in an index. (3) The Lipper High Yield Bond Funds Index is an equal-weighted performance index, adjusted for capital-gain distributions and income dividends, of the largest qualifying funds classified by Lipper Inc. as investing primarily in high yield debt securities. It is compiled by Lipper Inc. Investors cannot invest directly in an index. 16 CREDIT SUISSE INSTITUTIONAL HIGH YIELD FUND SCHEDULE OF INVESTMENTS FEBRUARY 29, 2004 (UNAUDITED)
PAR RATINGS+ (000) (S&P / MOODY'S) MATURITY RATE% VALUE - --------- --------------- -------- ------- --------------- CORPORATE BONDS (90.8%) AEROSPACE (1.2%) $ 100 BE Aerospace, Inc., Series B, Senior Subordinated Notes (Callable 03/01/04 @ $102.00) (B- , Caa3) 03/01/08 8.000 $ 95,500 100 DRS Technologies, Inc., Rule 144A, Senior Subordinated Notes (Callable 11/01/08 @ $103.44)++ (B , B2) 11/01/13 6.875 104,000 100 L-3 Communications Corp., Global Company Guaranteed Notes (Callable 07/15/08 @ $103.06) (BB- , Ba3) 07/15/13 6.125 103,250 --------------- 302,750 --------------- AUTOMOBILE MANUFACTURING/VEHICLE PARTS (4.2%) 100 Collins & Aikman Products Corp., Company Guaranteed Notes (Callable 04/15/04 @ $100.00)! (B- , B3) 04/15/06 11.500 96,000 100 Cummins, Inc., Rule 144A, Senior Notes (Callable 12/01/06 @ $104.75)++,+ (BB+ , Ba2) 12/01/10 9.500 118,000 200 Delco Remy International, Inc., Company Guaranteed Notes (Callable 08/01/04 @ $100.00)! (CCC+ , B3) 08/01/06 10.625 202,000 100 Holley Performance Products, Series B, Company Guaranteed Notes (Callable 09/15/04 @ $104.08) (CCC- , Caa3) 09/15/07 12.250 63,500 450 Motor Coach Industries International, Inc., Company Guaranteed Notes (Callable 05/01/04 @ $105.62) (CC , Ca) 05/01/09 11.250 146,250 200 Stanadyne Automotive Corp., Series B, Company Guaranteed Notes (Callable 12/15/04 @ $101.71) (B , B3) 12/15/07 10.250 205,000 100 Tenneco Automotive, Inc., Series B, Global Secured Notes (Callable 07/15/08 @ $105.12) (CCC+ , B2) 07/15/13 10.250 117,000 100 TRW Automotive, Inc., Global Senior Subordinated Notes (Callable 02/15/08 @ $105.50) (BB- , B2) 02/15/13 11.000 118,000 --------------- 1,065,750 --------------- BROADCAST/OUTDOOR (2.5%) 100 Entravision Communications Corp., Global Company Guaranteed Notes (Callable 03/15/06 @ $104.06) (B- , B3) 03/15/09 8.125 107,250 125 Gray Television, Inc., Global Company Guaranteed Notes (Callable (12/15/06 @ $104.62) (B- , B2) 12/15/11 9.250 139,688 100 Interep National Radio Sales, Inc., Series B, Company Guaranteed Notes (Callable 07/01/04 @ $103.33) (CCC- , Caa2) 07/01/08 10.000 89,500 100 Paxson Communications Corp., Global Company Guaranteed Notes (Callable 01/15/06 @ $106.12)+ (CCC+ , Caa1) 01/15/09 12.250 85,500 100 Radio One, Inc., Series B, Global Company Guaranteed Notes (Callable 07/01/06 @ $104.44) (B- , B2) 07/01/11 8.875 111,000 100 Sinclair Broadcast Group, Inc., Global Company Guaranteed Notes (B , B2) 12/15/11 8.750 110,250 --------------- 643,188 --------------- BUILDING PRODUCTS (1.6%) 100 Associated Materials, Inc., Global Company Guaranteed Notes (Callable 04/15/07 @ $104.88) (B- , B3) 04/15/12 9.750 110,500 100 Building Materials Corp., Company Guaranteed Notes (B+ , B2) 12/01/08 8.000 100,500 100 Dayton Superior Corp., Company Guaranteed Notes (Callable 06/15/07 @ $102.17) (CCC+ , Caa2) 06/15/09 13.000 83,000 100 Ply Gem Industries, Inc., Rule 144, Senior Subordinated Notes (Callable 02/15/08 @ $104.50)++ (B- , B3) 02/15/12 9.000 103,250 --------------- 397,250 ---------------
See Accompanying Notes to Financial Statements. 17
PAR RATINGS+ (000) (S&P / MOODY'S) MATURITY RATE% VALUE - --------- --------------- -------- ------- --------------- CABLE (7.7%) $ 250 Adelphia Communications Corp., Series B, Senior Notes0 (NR , NR) 07/15/04 10.500 $ 246,250 250 Century Communications Corp., Senior Discount Notes0 (NR , NR) 12/31/49 0.00 250,000 200 Charter Communications Holdings LLC, Senior Discount Notes (Callable 04/01/04 @ $104.96)+ (CCC- , Ca) 04/01/11 9.920 166,500 100 Charter Communications Holdings LLC, Senior Notes (Callable 01/15/05 @ $105.12) (CCC- , Ca) 01/15/10 10.250 87,250 100 CSC Holdings, Inc., Senior Subordinated Debentures (Callable 02/15/05 @ $102.40)! (B+ , B2) 02/15/13 9.875 104,375 150 Frontiervision Holdings LP, Senior Discount Notes (Callable 09/15/04 @ $101.98)@ (NR , NR) 09/15/07 11.875 183,750 250 Insight Communications Company, Inc., Senior Discount Notes (Callable 02/15/06 @ $106.12)+ (B- , Caa2) 02/15/11 12.250 216,250 100 Insight Midwest/Insight Capital Corp., Senior Notes (Callable 10/01/04 @ $104.88)! (B+ , B2) 10/01/09 9.750 105,750 100 LodgeNet Entertainment Corp., Senior Subordinated Debentures (Callable 06/15/08 $104.75) (B- , B3) 06/15/13 9.500 112,250 100 Mediacom LLC Capital Corp., Senior Notes (Callable 01/15/06 @ $104.75) (B+ , B2) 01/15/13 9.500 102,000 150 Mediacom LLC Capital Corp., Senior Notes (Callable 02/15/06 @ $103.94)! (B+ , B2) 02/15/11 7.875 147,750 100 Northland Cable Television, Inc., Company Guaranteed Notes (Callable 11/15/04 @ $101.71) (CC , Caa3) 11/15/07 10.250 101,125 125 Olympus Communications LP, Series B, Senior Notes (Callable 11/15/04 @ $100.00)@ (NR , NR) 11/15/06 10.625 152,500 --------------- 1,975,750 --------------- CAPITAL GOODS (1.7%) 100 Intermet Corp., Global Company Guaranteed Notes (Callable 06/15/06 @ $104.88) (B+ , B2) 06/15/09 9.750 94,500 105 JII Holdings LLC, Rule 144A, Secured Notes (Callable 01/01/05 @ $106.50)++ (NR , NR) 04/01/07 13.000 89,250 160 Motors & Gears, Inc., Series D, Senior Notes (Callable 11/15/04 @ $100.00) (CCC+ , Caa1) 11/15/06 10.750 140,000 100 SPX Corp., Senior Notes (Callable 01/01/08 @ $103.75) (BB+ , Ba3) 01/01/13 7.500 107,250 --------------- 431,000 --------------- CHEMICALS (2.9%) 100 Applied Extrusion Technologies, Inc., Series B, Company Guaranteed Notes (Callable 07/01/06 @ $105.38)! (CCC , Caa1) 07/01/11 10.750 85,500 100 Equistar Chemicals LP/ Equistar Funding Corp., Global Company Guaranteed Notes (B+ , B2) 09/01/08 10.125 108,500 100 IMC Global, Inc., Series B, Global Company Guaranteed Notes (Callable 06/01/06 @ $105.62) (B+ , B1) 06/01/11 11.250 119,000 110 Lyondell Chemical Co., Series B, Secured Notes (Callable 05/01/04 @ $104.94) (B+ , B1) 05/01/07 9.875 114,675 100 Nalco Co., Rule 144A, Senior Subordinated Notes (Callable 11/15/08 @ $104.44)++, ! (B- , Caa1) 11/15/13 8.875 105,500 100 Radnor Holdings Corp., Global Senior Notes (Callable 03/15/07 @ $105.50)! (B , B2) 03/15/10 11.000 91,000 100 Terra Capital, Inc., Global Secured Notes (Callable 06/01/07 @ $105.75) (B- , Caa1) 06/01/10 11.500 110,000 --------------- 734,175 ---------------
See Accompanying Notes to Financial Statements. 18
PAR RATINGS+ (000) (S&P / MOODY'S) MATURITY RATE% VALUE - --------- --------------- -------- ------- --------------- COMPETITIVE LOCAL EXCHANGE CARRIER (CLEC) (2.4%) $ 100 Block Communications, Inc., Global Company Guaranteed Notes (Callable 04/15/06 @ $104.62) (B- , B2) 04/15/09 9.250 $ 107,750 400 RCN Corp., Senior Notes (Callable 10/15/04 @ $101.67)! (NR , Ca) 10/15/07 10.000 222,000 232 RCN Corp., Series B, Senior Discount Notes (Callable 02/15/05 @ $101.63)+ (NR , Ca) 02/15/08 9.800 132,240 150 Time Warner Telecom LLC, Senior Notes (Callable 07/15/04 @ $103.25) (CCC+ , B3) 07/15/08 9.750 142,500 --------------- 604,490 --------------- CONSUMER PRODUCTS/TOBACCO (7.7%) 125 Central Garden & Pet Co., Global Company Guaranteed Notes (Callable 02/01/08 @ $104.56) (B+ , B2) 02/01/13 9.125 139,375 715 Diamond Brands Operating, Company Guaranteed Notes (Callable 04/15/04 @ $103.38)0 (D , NR) 04/15/08 10.125 8,938 100 DIMON, Inc., Series B, Global Company Guaranteed Notes (Callable 10/15/06 @ $104.81) (BB , Ba3) 10/15/11 9.625 106,000 250 General Binding Corp., Company Guaranteed Notes (Callable 06/01/04 @ $103.13) (B- , Caa1) 06/01/08 9.375 253,437 100 Hockey Co./Sports Maska, Inc., Global Units (Callable 04/15/06 @ $105.62) (B , B2) 04/15/09 11.250 113,500 250 Holmes Products Corp., Series D, Senior Subordinated Notes (Callable 11/15/04 @ $101.65) (B- , Caa1) 11/15/07 9.875 257,500 100 Jarden Corp., Global Company Guaranteed Notes (Callable 05/01/07 @ $104.88) (B- , B2) 05/01/12 9.750 111,500 100 Johnsondiversey, Inc., Series B, Global Company Guaranteed Notes (Callable 05/15/07 @ $104.81) (B , B2) 05/15/12 9.625 109,500 250 Jostens, Inc., Senior Subordinated Notes (Callable 05/01/05 @ $106.38) (B- , B3) 05/01/10 12.750 286,250 150 Playtex Products, Inc., Global Company Guaranteed Notes (Callable 06/01/06 @ $104.69)! (CCC+ , Caa2) 06/01/11 9.375 139,875 150 Revlon Consumer Products Corp., Global Company Guaranteed Notes (CCC+ , Caa1) 12/01/05 12.000 161,250 150 TriMas Corp., Global Company Guaranteed Notes (Callable 06/15/07 @ $104.94) (B , B3) 06/15/12 9.875 162,750 151 Werner Holding Company, Inc., Series A, Company Guaranteed Notes (Callable 11/15/04 @ $101.67)! (CCC+ , B3) 11/15/07 10.000 112,875 --------------- 1,962,750 --------------- CONTAINERS (2.1%) 150 Berry Plastics Corp., Global Company Guaranteed Notes (Callable 07/15/07 @ $105.38) (B- , B3) 07/15/12 10.750 174,750 100 Constar International, Inc., Senior Subordinated Notes (Callable 12/01/07 @ $105.50)! (B , Caa1) 12/01/12 11.000 83,500 100 Owens-Illinois, Inc., Senior Notes (B , Caa1) 05/15/08 7.350 100,750 100 Pliant Corp., Rule 144A, Secured Notes (Callable 06/15/07 @ $105.56)++, + (B , B3) 06/15/09 11.125 80,500 100 Tekni-Plex, Inc., Series B, Company Guaranteed Notes (Callable 06/15/05 @ $106.38) (B- , B3) 06/15/10 12.750 108,500 --------------- 548,000 --------------- ELECTRONICS/INFORMATION/DATA TECHNOLOGY (0.2%) 352 Ampex Corp., Secured Notes (NR , NR) 08/15/08 12.000 52,740 ---------------
See Accompanying Notes to Financial Statements. 19
PAR RATINGS+ (000) (S&P / MOODY'S) MATURITY RATE% VALUE - --------- --------------- -------- ------- --------------- ENERGY - OTHER (3.2%) $ 100 Amerigas Partners LP Eagle Finance Corp., Series B, Global Senior Notes (Callable 05/20/06 @ $104.44) (BB- , B2) 05/20/11 8.875 $ 111,000 500 Eagle Geophysical, Inc., Liquidating Trust^ (NR , NR) 07/15/08 10.750 18 100 El Paso CGP Co., Notes (CCC+ , Caa1) 02/01/09 6.375 84,500 100 El Paso Corp., Senior Notes! (CCC+ , Caa1) 05/15/11 7.000 87,500 100 El Paso Production Holding Co., Global Company Guaranteed Notes (Callable 06/01/08 @ $103.88) (B- , B3) 06/01/13 7.750 94,500 100 Giant Industries, Inc., Global Company Guaranteed Notes (Callable 05/15/07 @ $105.50) (B- , B3) 05/15/12 11.000 112,000 150 Reliant Resouces, Inc., Global Secured Notes (Callable 07/15/08 @ $104.75) (B , B1) 07/15/13 9.500 163,500 100 Trico Marine Services, Inc., Global Company Guaranteed Notes (Callable 05/15/07 @ $104.44) (CCC- , Caa3) 05/15/12 8.875 66,000 100 Williams Companies, Inc., Notes (B+ , B3) 12/01/08 6.500 103,000 --------------- 822,018 --------------- FINANCE - OTHER (1.1%) 100 Genesis HealthCare Corp., Rule 144A, Senior Subordinated Notes (Callable 10/15/08 @ $104.00)++ (B- , B3) 10/15/13 8.000 107,000 150 Ventas Realty LP, Global Company Guaranteed Notes (BB- , Ba3) 05/01/12 9.000 171,375 --------------- 278,375 --------------- FOOD PROCESSORS/BEVERAGE/BOTTLING (4.6%) 125 Aurora Foods, Inc., Series B, Senior Subordinated Notes (Callable 02/15/05 @ $102.00)@ (D , NR) 02/15/07 9.875 109,062 100 B&G Foods, Inc., Series D, Global Company Guaranteed Notes (Callable 08/01/04 @ $101.60) (B- , B3) 08/01/07 9.625 103,500 25 Birds Eye Foods, Inc., Company Guaranteed Notes (Callable 11/01/04 @ $103.96) (B- , B3) 11/01/08 11.875 26,625 100 Eagle Family Foods, Inc., Series B, Company Guaranteed Notes (Callable 01/15/05 @ $101.46) (CCC+ , Caa2) 01/15/08 8.750 80,500 150 Land O' Lakes, Inc., Global Senior Notes (Callable 11/15/06 @ $104.38) (B- , B3) 11/15/11 8.750 130,875 100 Luigino's, Inc., Senior Subordinated Notes (Callable 02/01/05 @ $100.00) (B- , B3) 02/01/06 10.000 102,750 200 National Wine & Spirits, Inc., Company Guaranteed Notes (Callable 01/15/05 @ $103.38) (CCC+ , B3) 01/15/09 10.125 192,000 250 New World Pasta Co., Company Guaranteed Notes (Callable 02/15/05 @ $103.08) (NR , NR) 02/15/09 9.250 43,750 100 Pilgrim's Pride Corp., Company Guaranteed Notes (Callable 09/15/06 @ $104.81) (BB- , B1) 09/15/11 9.625 109,000 100 Pinnacle Foods Holdings Corp., Rule 144A, Senior Subordinated Notes (Callable 12/01/08 @ $104.12)++ (B , B3) 12/01/13 8.250 105,250 150 Premier International Foods PLC, Yankee Senior Notes (Callable 09/01/04 @ $106.00) (B- , B3) 09/01/09 12.000 163,500 --------------- 1,166,812 --------------- GAMING (8.3%) 100 Ameristar Casinos, Inc., Global Company Guaranteed Notes (Callable 02/15/06 @ $105.38) (B , B2) 02/15/09 10.750 115,500 100 Argosy Gaming Co., Senior Subordinated Notes (Callable 09/01/06 @ $104.50) (B+ , B2) 09/01/11 9.000 112,000 100 Aztar Corp., Global Senior Subordinated Notes (Callable 08/15/06 @ $104.50) (B+ , Ba3) 08/15/11 9.000 111,250
See Accompanying Notes to Financial Statements. 20
PAR RATINGS+ (000) (S&P / MOODY'S) MATURITY RATE% VALUE - --------- --------------- -------- ------- --------------- GAMING $ 100 Coast Hotels & Casinos, Inc., Company Guaranteed Notes (Callable 04/01/04 @ 104.75) (B , B2) 04/01/09 9.500 $ 105,750 150 Hard Rock Hotel, Inc., Global Notes (Callable 06/01/08 @ $104.44) (B , B3) 06/01/13 8.875 162,000 150 Herbst Gaming, Inc., Series B, Global Secured Notes (Callable 09/01/05 @ $105.38) (B , B2) 09/01/08 10.750 168,750 100 Isle of Capri Casinos, Inc., Company Guaranteed Notes (Callable 04/15/04 @ $104.38) (B , B2) 04/15/09 8.750 105,750 100 Kerzner International, Ltd., Global Company Guaranteed Notes (Callable 08/15/06 @ $104.44) (B+ , B2) 08/15/11 8.875 111,000 100 Majestic Star Casino LLC, Company Guaranteed Notes (Callable 10/15/07 @ $104.75) (B , B2) 10/15/10 9.500 105,250 100 Old Evangeline Downs, Company Guaranteed Notes (Callable 03/01/07 @ $106.50) (B- , NR) 03/01/10 13.000 112,500 250 Peninsula Gaming LLC, Series B, Company Guaranteed Notes (Callable 07/01/04 @ $105.33) (B , B2) 07/01/06 12.250 271,250 100 Penn National Gaming, Inc., Series B, Global Company Guaranteed Notes (Callable 03/01/05 @ $105.56) (B , B3) 03/01/08 11.125 112,750 198 Waterford Gaming LLC, Rule 144A, Senior Notes (Callable 09/15/08 @ $103.55)++ (B+ , B1) 09/15/12 8.625 212,850 300 Windsor Woodmont Black Hawk, Series B, First Mortgage (Callable 03/15/04 @ $104.33)@ (NR , NR) 03/15/05 13.000 197,250 100 Wynn Las Vegas LLC, Second Mortgage Note (Callable 11/01/06 @ $112.00) (CCC+ , B3) 11/01/10 12.000 120,500 --------------- 2,124,350 --------------- HEALTHCARE FACILITIES/SUPPLIES (3.5%) 100 Alpharma, Inc., Rule 144A, Senior Notes (Callable 05/01/07 @ $104.31)++ (B , B3) 05/01/11 8.625 104,500 100 Extendicare Health Services, Inc., Company Guaranteed Notes (Callable 12/15/04 @ $101.56) (B- , B3) 12/15/07 9.350 104,000 280 Magellan Health Services, Inc., Series A, Senior Notes (Callable 11/15/05 @ $104.69) (B+ , B3) 11/15/08 9.375 299,756 50 Rotech Healthcare, Inc., Global Company Guaranteed Notes (Callable 04/01/07 @ $104.75) (B+ , B2) 04/01/12 9.500 54,000 100 Universal Hospital Services, Inc., Rule 144A, Senior Notes (Callable 11/01/07 @ $105.06)++ (B- , B3) 11/01/11 10.125 107,250 100 Vanguard Health Systems, Inc., Global Company Guaranteed Notes (Callable 08/01/06 @ $104.88) (CCC+ , B3) 08/01/11 9.750 109,750 100 Vicar Operating, Inc., Company Guaranteed Notes (Callable 12/01/05 @ $104.94) (B- , B3) 12/01/09 9.875 111,500 --------------- 890,756 --------------- HOME BUILDERS (0.4%) 100 Beazer Homes USA, Inc., Global Company Guaranteed Notes (Callable 04/15/07 @ $104.19) (BB , Ba2) 04/15/12 8.375 111,500 --------------- INDUSTRIAL - OTHER (0.4%) 100 Wolverine Tube, Inc., Global Company Guaranteed Notes (Callable 04/01/06 @ $105.25) (B+ , B3) 04/01/09 10.500 106,500 --------------- LEISURE (2.7%) 100 AMC Entertainment, Inc., Senior Subordinated Notes (Callable 02/01/05 @ $103.17) (CCC+ , Caa1) 02/01/11 9.500 105,250 200 Booth Creek Ski Holdings, Inc., Series B, Company Guaranteed Notes (Callable 03/15/04 @ $102.08) (CCC+ , Caa1) 03/15/07 12.500 203,000
See Accompanying Notes to Financial Statements. 21
PAR RATINGS+ (000) (S&P / MOODY'S) MATURITY RATE% VALUE - --------- --------------- -------- ------- --------------- LEISURE $ 100 Cinemark USA, Inc., Global Senior Subordinated Notes (Callable 02/01/08 @ $104.50) (B- , B3) 02/01/13 9.000 $ 112,250 150 Six Flags, Inc., Rule 144A, Senior Notes (Callable 06/01/09 @ $104.81)++ (B- , B2) 06/01/14 9.625 159,000 100 Speedway Motorsports, Inc., Global Senior Subordinated Notes (Callable 06/01/08 @ $103.38) (B+ , Ba2) 06/01/13 6.750 104,750 --------------- 684,250 --------------- LODGING (0.4%) 100 Inn of The Mountain Gods Resort, Rule 144A, Senior Notes (Callable 11/15/07 @ $106.00)++ (B , Caa1) 11/15/10 12.000 109,250 --------------- METALS & MINING (1.1%) 100 Earle M. Jorgensen Co., Global Secured Notes (Callable 06/01/07 @ $104.88) (B- , B2) 06/01/12 9.750 112,000 100 Metallurg, Inc., Series B, Company Guaranteed Notes (Callable 12/01/04 @ $101.83) (CC , Ca) 12/01/07 11.000 55,500 100 UCAR Finance, Inc., Global Company Guaranteed Notes (Callable 02/15/07 @ $105.12) (B , B2) 02/15/12 10.250 114,500 --------------- 282,000 --------------- OIL EQUIPMENT (1.0%) 115 Parker Drilling Co., Series B, Company Guaranteed Notes (Callable 11/15/04 @ $105.06)! (B- , B2) 11/15/09 10.125 125,925 135 Pride International, Inc., Senior Notes (Callable 05/01/04 @ $101.56) (BB , Ba2) 05/01/07 9.375 138,881 --------------- 264,806 --------------- PAPER & FOREST PRODUCTS (1.6%) 100 Box USA Holdings, Series B, Senior Notes (Callable 06/01/04 @ $100.00) (CCC+ , B3) 06/01/06 12.000 100,500 100 Caraustar Industries, Inc., Global Company Guaranteed Notes (Callable 04/01/06 @ $105.25) (B+ , B2) 04/01/11 9.875 103,500 100 Fonda Group, Inc., Series B, Senior Subordinated Notes (Callable 03/01/04 @ $101.58) (CCC , Caa2) 03/01/07 9.500 102,500 100 Georgia-Pacific Corp., Notes (BB+ , Ba3) 05/15/06 7.500 107,000 --------------- 413,500 --------------- PHARMACEUTICALS (0.8%) 100 aaiPharma, Inc., Global Company Guaranteed Notes (Callable 04/01/06 @ 105.50) (B- , Caa1) 04/01/10 11.000 109,000 82 Biovail Corp., Yankee Senior Subordinated Notes (Callable 04/01/06 @ 103.94) (BB- , B2) 04/01/10 7.875 83,230 --------------- 192,230 --------------- PUBLISHING (2.0%) 100 Dex Media, Inc., Rule 144A, Notes (Callable 11/15/08 @ $104.00)++ (B , Caa2) 11/15/13 8.000 100,500 300 Liberty Group Publishing, Inc., Debentures (Callable 02/01/05 @ $101.94)+ (CCC+ , Caa2) 02/01/09 11.625 306,000 100 Phoenix Color Corp., Company Guaranteed Notes (Callable 02/01/05 @ $103.46) (CCC+ , Caa2) 02/01/09 10.375 92,625 500 Premier Graphics, Inc., Company Guaranteed Notes (Callable 12/01/04 @ $100.00)##, ^ (NR , NR) 12/01/05 11.500 0 --------------- 499,125 ---------------
See Accompanying Notes to Financial Statements. 22
PAR RATINGS+ (000) (S&P / MOODY'S) MATURITY RATE% VALUE - --------- --------------- -------- ------- --------------- RESTAURANTS (0.9%) $ 100 American Restaurant Group, Inc., Series D, Company Guaranteed Notes (Callable 11/01/04 @ $105.75) (CCC- , Caa2) 11/01/06 11.500 $ 55,500 215 AmeriKing, Inc., Senior Notes@ (NR , NR) 11/15/07 10.750 0 29 AmeriKing, Inc., Senior Notes@ (NR , NR) 05/15/08 13.000 0 200 AmeriKing, Inc., Units@ (NR , NR) 05/15/08 13.000 0 100 Carrols Corp., Company Guaranteed Notes (Callable 12/01/04 @ $103.17) (B- , B3) 12/01/08 9.500 101,000 100 Sbarro, Inc., Company Guaranteed Notes (Callable 09/15/04 @ $105.50)! (CCC , Caa2) 09/15/09 11.000 83,000 --------------- 239,500 --------------- RETAIL-FOOD & DRUG (1.4%) 100 Great Atlantic & Pacific Tea Company, Inc., Notes (B , B3) 04/15/07 7.750 90,875 95 Nutritional Sourcing Corp., Notes (Callable 06/05/04 @ $102.00) (NR , NR) 08/01/09 10.125 60,142 100 Rite Aid Corp., Global Secured Notes (Callable 05/01/07 @ $104.06) (B+ , B2) 05/01/10 8.125 108,000 100 Roundy's, Inc., Series B, Global Company Guaranteed Notes (Callable 06/15/07 @ $104.44) (B , B2) 06/15/12 8.875 109,500 --------------- 368,517 --------------- RETAIL STORES (3.4%) 100 AutoNation, Inc., Global Company Guaranteed Notes (BB+ , Ba2) 08/01/08 9.000 116,000 370 Flooring America, Inc., Series B, Company Guaranteed Notes (Callable 10/15/04 @ $101.16)@ (NR , NR) 10/15/07 9.250 37 100 Jafra Cosmetics/Distribution, Global Company Guaranteed Notes (Callable 05/15/07 @ $105.38) (B- , B3) 05/15/11 10.750 111,500 150 Leslie's Poolmart, Series B, Senior Notes (Callable 07/15/05 @ $102.59) (B- , B2) 07/15/08 10.375 149,437 100 Michaels Stores, Inc., Senior Notes (Callable 07/01/05 @ $104.62) (BB+ , Ba1) 07/01/09 9.250 111,125 100 Pep Boys - Manny, Moe & Jack, Notes (BB- , B2) 06/01/05 7.000 103,000 125 Pep Boys - Manny, Moe & Jack, Series MTNB, Notes (BB- , B2) 07/07/06 6.920 130,625 22 Petco Animal Supplies, Inc., Global Senior Subordinated Notes (Callable 11/01/06 @ $105.38) (B , B2) 11/01/11 10.750 25,850 100 United Auto Group, Inc., Global Company Guaranteed Notes (Callable 03/15/07 @ $104.81) (B , B3) 03/15/12 9.625 111,000 --------------- 858,574 --------------- SATELLITE (1.2%) 100 Pegasus Communications Corp., Series B, Senior Notes (Callable 12/01/04 @ $101.63)! (CCC- , Ca) 12/01/06 9.750 91,500 250 Pegasus Satellite Communication, Global Senior Discount Notes (Callable 03/01/04 @ $106.75)+ (CCC- , C) 03/01/07 13.500 207,500 --------------- 299,000 --------------- SECONDARY OIL & GAS PRODUCERS (3.4%) 100 Belden & Blake Corp., Series B, Company Guaranteed Notes (Callable 06/15/04 @ $101.65) (CCC- , Caa3) 06/15/07 9.875 99,500 116 Chesapeake Energy Corp., Senior Notes (Callable 01/15/09 @ $103.44) (BB- , Ba3) 01/15/16 6.875 120,495 100 Continental Resources, Inc., Company Guaranteed Notes (Callable 08/01/04 @ $103.42) (CCC+ , Caa1) 08/01/08 10.250 103,500 100 Magnum Hunter Resources, Inc., Global Company Guaranteed Notes (Callable 03/15/07 @ $104.80) (B+ , B2) 03/15/12 9.600 112,000
See Accompanying Notes to Financial Statements. 23
PAR RATINGS+ (000) (S&P / MOODY'S) MATURITY RATE% VALUE - --------- --------------- -------- ------- --------------- SECONDARY OIL & GAS PRODUCERS $ 100 Plains Exploration & Production Co., Series B, Global Company Guaranteed Notes (Callable 07/01/07 @ $104.38) (B , B2) 07/01/12 8.750 $ 112,250 100 Swift Energy Co., Senior Subordinated Notes (Callable 05/01/07 @ $104.69) (B , B3) 05/01/12 9.375 112,000 100 Vintage Petroleum, Inc., Global Senior Subordinated Notes (Callable 05/15/06 @ $103.94) (B , B1) 05/15/11 7.875 107,000 100 Wiser Oil Co., Company Guaranteed Notes (Callable 05/15/04 @ $101.58) (CCC+ , Caa3) 05/15/07 9.500 100,500 --------------- 867,245 --------------- SERVICES (3.9%) 100 Affinity Group, Inc., Rule 144A, Senior Subordinated Notes (Callable 02/15/08 @ $104.50)++ (B- , B3) 02/15/12 9.000 103,500 250 Ameriserve Finance Trust, Rule 144A, Secured Notes (Callable 09/15/04 @ $103.00)@,++ (NR , NR) 09/15/06 12.000 13,125 100 IESI Corp., Global Company Guaranteed Notes (Callable 06/15/07 @ $105.12) (B- , B3) 06/15/12 10.250 109,500 100 Iron Mountain, Inc., Company Guaranteed Notes (Callable 01/15/08 @ $103.88) (B , B3) 01/15/15 7.750 106,000 100 La Petite Academy, Inc., Series B, Company Guaranteed Notes (Callable 05/15/04 @ $103.33) (CC , Ca) 05/15/08 10.000 77,500 100 LNR Property Corp., Rule 144A, Senior Subordinated Notes (Callable 10/15/08 @ $103.62)++ (B+ , Ba3) 10/15/13 7.250 105,000 100 Morton's Restaurant Group, Inc., Global Secured Notes (Callable 07/01/07 @ $105.30) (B , B2) 07/01/10 7.500 96,500 175 Muzak LLC/Muzak Finance, Global Senior Notes (Callable 02/15/06 @ $105.00) (B- , B3) 02/15/09 10.000 185,063 100 NationsRent, Inc., Rule 144A, Secured Notes (Callable 10/15/07 @ $104.75)++ (BB- , B2) 10/15/10 9.500 108,500 100 United Rentals North America, Inc., Rule 144A, Senior Subordinated Notes (Callable 11/15/08 @ $103.88)++ (B+ , B2) 11/15/13 7.750 99,750 --------------- 1,004,438 --------------- TECHNOLOGY (1.6%) 100 Lucent Technologies, Inc., Notes! (B- , Caa1) 07/15/06 7.250 103,750 100 Lucent Technologies, Inc., Notes! (B- , Caa1) 11/15/08 5.500 96,750 100 Seagate Technology HDD Holdings, Global Company Guaranteed Notes (Callable 05/15/06 @ $104.00) (BB+ , Ba2) 05/15/09 8.000 108,750 100 Solectron Corp., Senior Notes (Callable 02/15/06 @ $104.81)! (B+ , B1) 02/15/09 9.625 111,500 --------------- 420,750 --------------- TEXTILE/APPAREL/SHOE MANUFACTURING (0.8%) 700 Advanced Glassfiber Yarns LLC, Senior Subordinated Notes (Callable 01/15/05 @ $103.38)@ (NR , NR) 01/15/09 9.875 45,500 100 BGF Industries, Inc., Series B, Senior Subordinated Notes (Callable 01/15/05 @ $103.50) (CC , Ca) 01/15/09 10.250 78,500 100 Levi Strauss & Co., Global Senior Notes (Callable 12/15/07 @ $106.12) (CCC , Ca) 12/15/12 12.250 69,500 --------------- 193,500 ---------------
See Accompanying Notes to Financial Statements. 24
PAR RATINGS+ (000) (S&P / MOODY'S) MATURITY RATE% VALUE - --------- --------------- -------- ------- --------------- TOWER (0.8%) $ 100 Crown Castle International Corp., Rule 144A, Senior Notes (Callable 12/01/08 @ $103.75)++ (CCC , B3) 12/01/13 7.500 $ 100,750 150 SBA Telecommunications/SBA Communications Corp., Rule 144A, Senior Discount Notes (Callable 12/15/07 @ $104.88)++, + (CCC- , Caa1) 12/15/11 9.750 104,250 --------------- 205,000 --------------- TRANSPORTATION/OTHER (0.4%) 100 Overseas Shipholding Group, Inc., Global Senior Notes (Callable 03/15/08 @ $104.12) (BB+ , Ba1) 03/15/13 8.250 109,500 --------------- UTILITIES (3.5%) 48 AES Corp., Senior Unsecured Notes (B- , B3) 06/01/09 9.500 52,560 100 Aquila, Inc., Senior Notes (B , Caa1) 11/15/09 7.625 96,500 100 Calpine Corp., Senior Notes! (CCC+ , Caa1) 04/15/09 7.750 74,750 100 CMS Energy Corp., Senior Notes! (B+ , B3) 01/15/09 7.500 103,625 150 Cogentrix Energy, Inc., Series B, Company Guaranteed Notes (B+ , Ba3) 10/15/08 8.750 164,625 100 Edison Mission Energy, Senior Notes (B , B2) 06/15/09 7.730 96,500 100 Mirant Americas Generation LLC, Senior Notes0 (D , NR) 05/01/06 7.625 81,000 100 Mirant Corp., Rule 144A, Senior Notes++, @, ! (NR , NR) 07/15/04 7.400 62,500 50 Nevada Power Co., Series E, Global Notes (Callable 10/15/06 @ $105.44) (NR , Ba2) 10/15/09 10.875 58,750 100 Sierra Pacific Resources, Notes (B- , B2) 05/15/05 8.750 104,000 --------------- 894,810 --------------- WIRELESS (4.2%) 107 AirGate PCS, Inc., Secured Notes (Callable 01/01/06 @ $104.69) (NR , NR) 09/01/09 9.375 103,935 100 Alamosa Delaware, Inc., Rule 144A, Senior Notes (Callable 01/31/08 @ $104.25)++ (CCC , Caa1) 01/31/12 8.500 96,000 100 Centennial Cellular Corp., Senior Subordinated Notes (Callable 12/15/04 @ $103.58)! (CCC , Caa3) 12/15/08 10.750 105,500 100 Centennial Communications Corp., Rule 144A, Senior Notes (Callable 02/01/09 @ $104.06)++ (CCC , Caa1) 02/01/14 8.125 94,500 600 iPCS, Inc., Senior Discount Notes (Callable 07/15/05 @ $107.00)@, + (NR , NR) 07/15/10 14.000 165,000 150 Nextel Partners, Inc., Global Senior Notes (Callable 07/01/07 @ $104.06) (CCC+ , Caa1) 07/01/11 8.125 159,000 200 Triton PCS, Inc., Global Company Guaranteed Notes (Callable 11/15/06 @ $104.38)! (B- , B3) 11/15/11 8.750 201,000 150 U.S. Unwired, Inc., Series B, Company Guaranteed Notes (Callable 11/01/04 @ $106.69)+ (C , Caa2) 11/01/09 13.375 139,500 --------------- 1,064,435 --------------- TOTAL CORPORATE BONDS (Cost $24,842,750) 23,188,584 --------------- FOREIGN BONDS (2.7%) CABLE (0.4%) 100 Comcast UK Cable Partners, Ltd., Yankee Debentures (Bermuda)+ (C , Caa2) 11/15/07 11.200 101,125 --------------- CHEMICALS (0.4%) 100 Acetex Corp., Global Senior Notes (Callable 08/01/05 @ $105.44) (Canada) (B+ , B2) 08/01/09 10.875 110,750 ---------------
See Accompanying Notes to Financial Statements. 25
PAR RATINGS+ (000) (S&P / MOODY'S) MATURITY RATE% VALUE - --------- --------------- -------- ------- --------------- CONTAINERS (0.5%) $ 100 Crown European Holdings SA, Global Secured Notes (Callable 03/01/08 @ $105.44) (France) (B , B2) 03/01/13 10.875 $ 117,000 --------------- INDUSTRIAL - OTHER (0.0%) 504 International Utility Structures, Inc., Subordinated Notes (Callable 02/01/05 @ $102.17) (Canada)## (NR , NR) 02/01/08 13.000 5,040 --------------- PAPER & FOREST PRODUCTS (1.0%) 100 Ainsworth Lumber Company, Ltd., Yankee Senior Notes (Canada) (B+ , B3) 07/15/07 12.500 129,500 118 Doman Industries, Ltd., Yankee Company Guaranteed Notes (Canada)@ (D , NR) 07/01/04 12.000 126,312 --------------- 255,812 --------------- SECONDARY OIL & GAS PRODUCERS (0.4%) 100 Compton Petroleum Corp., Global Senior Notes (Callable 05/15/06 @ $104.95) (Canada) (B , B2) 05/15/09 9.900 111,500 --------------- TOTAL FOREIGN BONDS (Cost $1,063,872) 701,227 --------------- NUMBER OF SHARES - --------- COMMON STOCKS (1.9%) AUTOMOBILE MANUFACTURING/VEHICLE PARTS (0.0%) 413,097 Cambridge Industries Liquidating Trust* 4,131 --------------- ENERGY - OTHER (0.0%) 3,914 Eagle Geophysical, Inc.*, ^ 9,785 --------------- INDUSTRIAL - OTHER (0.0%) 287 First Wave Marine, Inc.*, ^ 1,794 --------------- RETAIL-FOOD & DRUG (0.1%) 682 Archibald Candy Corp.*, ^ 17,050 --------------- RETAIL STORES (0.2%) 8,710 Safelite Glass Corp., Class B*, ^ 43,550 588 Safelite Realty Corp.*, ^ 5,880 --------------- 49,430 --------------- SECONDARY OIL & GAS PRODUCERS (0.4%) 3,135 Southwest Royalties, Inc.*, ^ 109,725 --------------- TEXTILE/APPAREL/SHOE MANUFACTURING (0.5%) 24,285 HCI Direct, Inc.*, ^ 121,425 2,800 Worldtex, Inc*, ^ 5,600 --------------- 127,025 --------------- WIRELESS (0.7%) 4,405 AirGate PCS, Inc.* 88,056 19,309 Dobson Communications Corp., Class A* 78,008 --------------- 166,064 --------------- TOTAL COMMON STOCKS (Cost $1,762,107) 485,004 --------------- PREFERRED STOCKS (1.8%) BROADCAST/OUTDOOR (1.1%) 2,772 Paxson Communications Corp.* 262,671 ---------------
See Accompanying Notes to Financial Statements. 26
PAR (000) VALUE - --------- --------------- CABLE (0.0%) 8 Adelphia Business Solutions, Inc., Series B*, @ $ 0 11,890 DIVA Systems Corp., Series C*, ^ 0 --------------- 0 --------------- ENERGY - OTHER (0.1%) 150 Metretek Technologies, Inc., Series B*, ^ 30,000 --------------- GAMING (0.0%) 1,145 Peninsula Gaming LLC* 6,871 --------------- RESTAURANTS (0.0%) 10,084 AmeriKing, Inc.*, ^ 0 --------------- SERVICES (0.0%) 14,036 Source Media, Inc.* 14 --------------- TEXTILE/APPAREL/SHOE MANUFACTURING (0.1%) 857 Worldtex, Inc*, ^ 25,710 --------------- WIRELESS (0.5%) 300 Dobson Communications Corp., Rule 144A++, * 41,473 880 Rural Cellular Corp., Series B* 81,180 --------------- 122,653 --------------- TOTAL PREFERRED STOCKS (Cost $1,147,718) 447,919 --------------- WARRANTS (0.0%) CABLE (0.0%) 7,581 DIVA Systems Corp., Rule 144A, strike $0.01 expires March 2008*,++, ^ 0 --------------- COMPETITIVE LOCAL EXCHANGE CARRIER (CLEC) (0.0%) 500 Carrier1 International, Rule 144A, strike $6.71 expires February 2009++, * 5 2,960 Loral Space & Communications, Ltd., strike $2.37 expires December 2006* 29 --------------- 34 --------------- ENERGY - OTHER (0.0%) 15,000 Metretek Technologies, Inc., strike $3.58 expires December 2004*, ^ 150 --------------- RESTAURANTS (0.0%) 176 New World Restaurant Group, Inc., strike $13.00 expires June 2006* 2 --------------- RETAIL STORES (0.0%) 21,345 Safelite Glass Corp., Class A, strike $6.50 expires January 2010*, ^ 214 14,230 Safelite Glass Corp., Class B, strike $6.50 expires January 2010*, ^ 142 --------------- 356 --------------- TECHNOLOGY (0.0%) 500 Orbital Imaging Corp., Rule 144A, strike $1.00 expires March 2005++, * 0 --------------- WIRELESS (0.0%) 500 AirGate PCS, Inc., strike $0.01 expires October 2009* 4,125 500 iPCS, Inc., Rule 144A, strike $5.50 expires July 2010++, * 5 --------------- 4,130 --------------- TOTAL WARRANTS (Cost $53,765) 4,672 ---------------
See Accompanying Notes to Financial Statements. 27
PAR (000) MATURITY RATE% VALUE - --------- -------- ------- --------------- SHORT-TERM INVESTMENTS (11.3%) $ 2,708 Deutsche Bank Tri-Party Repurchase Agreement (Agreement dated 2/27/04, to be repurchased at $2,752,180, collateralized by $2,175,000 Federal Home Loan Mortgage Corporation 3.05% due 1/19/07 and $546,070 Federal National Mortgage Association 2.50% due 5/20/08. Market Value of collateral is $2,762,822)~ 03/01/04 1.050 $ 2,708,155 179 State Street Bank and Trust Co. Euro Time Deposit 03/01/04 0.750 179,000 --------------- TOTAL SHORT-TERM INVESTMENTS (Cost $2,887,155) 2,887,155 --------------- TOTAL INVESTMENTS AT VALUE (108.5%) (Cost $31,757,367) 27,714,561 LIABILITIES IN EXCESS OF OTHER ASSETS (-8.5%) (2,177,992) --------------- NET ASSETS (100.0%) $ 25,536,569 ===============
+ Credit ratings given by the Standard & Poor's Division of The McGraw-Hill Companies, Inc. ("S&P") and Moody's Investors Service, Inc. ("Moody's") are unaudited. + Step Bond -- The interest rate is as of February 29, 2004 and will reset at a future date. ++ Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At February 29, 2004 these securities amounted to a value of $2,535,458 or 9.9% of net assets. @ Security in default. * Non-income producing security. ! Security or portion thereof is out on loan. ~ Represents security purchased with cash collateral received for securities on loan. ^ Not readily marketable security; security is valued at fair value as determined in good faith by the Board of Directors. ## Company filed for bankruptcy on 12/3/02. See Accompanying Notes to Financial Statements. 28 CREDIT SUISSE INSTITUTIONAL FUNDS STATEMENTS OF ASSETS AND LIABILITIES FEBRUARY 29, 2004 (UNAUDITED)
FIXED HIGH INCOME FUND YIELD FUND ----------------- ----------------- ASSETS Investments at value, including collateral for securities on loan of $1,691,553 and $2,708,155, respectively (cost $157,428,892 and $31,757,367, respectively) (Note 1) $ 160,701,952(1) $ 27,714,561(2) Cash -- 554 Unrealized appreciation on forward currency contracts (Note 1) 5,932,514 -- Receivable for investments sold 4,760,970 64 Dividend and interest receivable 1,145,168 553,964 Receivable for fund shares sold 231,543 -- Variation margin receivable 331,052 -- Receivable from investment adviser -- 5,862 Prepaid expenses and other assets 29,436 29,516 ----------------- ----------------- Total Assets 173,132,635 28,304,521 ----------------- ----------------- LIABILITIES Due to Custodian 8,762 -- Advisory fee payable (Note 2) 19,766 -- Administrative services fee payable (Note 2) 13,051 2,613 Payable for investments purchased 30,364,278 -- Unrealized depreciation on forward currency contracts (Note 1) 5,946,618 -- Payable upon return of securities loaned (Note 1) 1,691,553 2,708,155 Outstanding options written, at value (premiums received $217,209 and $0, respectively) (Note 1) 145,218 -- Payable for fund shares redeemed 12,610 9,913 Commitment fees payable (Note 3) 2,423 1,011 Other accrued expenses payable 84,717 46,260 ----------------- ----------------- Total Liabilities 38,288,996 2,767,952 ----------------- ----------------- NET ASSETS Capital stock, $0.001 par value (Note 5) 9,215 2,499 Paid-in capital (Note 5) 164,821,144 77,023,023 Undistributed net investment income (loss) 552,945 (571,847) Accumulated net realized loss from investments, futures transactions, options written and foreign currency transactions (33,997,459) (46,874,300) Net unrealized appreciation (depreciation) from investments, futures transactions, options written and foreign currency translations 3,457,794 (4,042,806) ----------------- ----------------- Net Assets $ 134,843,639 $ 25,536,569 ================= ================= Shares outstanding 9,214,570 2,498,664 ----------------- ----------------- Net asset value, offering price, and redemption price per share $ 14.63 $ 10.22 ================= =================
(1) Including $1,642,602 of securities on loan. (2) Including $2,588,334 of securities on loan. See Accompanying Notes to Financial Statements. 29 CREDIT SUISSE INSTITUTIONAL FUNDS STATEMENTS OF OPERATIONS FOR THE SIX MONTHS ENDED FEBRUARY 29, 2004 (UNAUDITED)
FIXED HIGH INCOME FUND YIELD FUND ----------------- ----------------- INVESTMENT INCOME (NOTE 1) Interest $ 2,973,740 $ 1,279,855 Dividends 7,945 17,303 Securities lending 5,118 6,607 ----------------- ----------------- Total investment income 2,986,803 1,303,765 ----------------- ----------------- EXPENSES Investment advisory fees (Note 2) 258,431 92,782 Administrative services fees (Note 2) 53,938 21,998 Custodian fees 30,888 15,500 Legal fees 24,474 23,007 Printing fees (Note 2) 17,448 9,205 Audit fees 14,335 11,135 Directors' fees 9,672 9,672 Registration fees 9,421 10,948 Insurance expense 7,888 5,954 Transfer agent fees 3,044 3,617 Commitment fees (Note 3) 2,797 840 Interest expense (Note 3) -- 3,471 Miscellaneous expense 7,579 5,020 ----------------- ----------------- Total expenses 439,915 213,149 Less: fees waived and expenses reimbursed (Note 2) (129,797) (120,367) ----------------- ----------------- Net expenses 310,118 92,782 ----------------- ----------------- Net investment income 2,676,685 1,210,983 ----------------- ----------------- NET REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS, FUTURES CONTRACTS, OPTIONS WRITTEN AND FOREIGN CURRENCY RELATED ITEMS Net realized gain (loss) from investments 1,693,293 (1,702,338) Net realized gain from futures contracts 57,204 -- Net realized gain from options written 32,037 -- Net realized loss from foreign currency transactions (43,975) -- Net change in unrealized appreciation (depreciation) from investments 2,575,447 3,592,732 Net change in unrealized appreciation (depreciation) from futures contracts 98,193 -- Net change in unrealized appreciation (depreciation) from options written 71,991 -- Net change in unrealized appreciation (depreciation) from foreign currency translations 138,610 -- ----------------- ----------------- Net realized and unrealized gain from investment, futures contracts, options written and foreign currency related items 4,622,800 1,890,394 ----------------- ----------------- Net increase in net assets resulting from operations $ 7,299,485 $ 3,101,377 ================= =================
See Accompanying Notes to Financial Statements. 30 CREDIT SUISSE INSTITUTIONAL FUNDS STATEMENTS OF CHANGES IN NET ASSETS
FIXED INCOME FUND HIGH YIELD FUND ------------------------------------ ------------------------------------- FOR THE SIX MONTHS FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED FOR THE YEAR FEBRUARY 29, 2004 ENDED FEBRUARY 29, 2004 ENDED (UNAUDITED) AUGUST 31, 2003 (UNAUDITED) AUGUST 31, 2003 ------------------- --------------- ------------------- --------------- FROM OPERATIONS Net investment income $ 2,676,685 $ 9,088,823 $ 1,210,983 $ 7,580,121 Net realized gain (loss) from investments, futures contracts, options written and foreign currency transactions 1,738,559 (4,119,630) (1,702,338) (6,051,826) Net change in unrealized appreciation (depreciation) from investments, futures contracts, options written and foreign currency translations 2,884,241 13,994,978 3,592,732 11,745,307 ------------------- --------------- ------------------- --------------- Net increase in net assets resulting from operations 7,299,485 18,964,171 3,101,377 13,273,602 ------------------- --------------- ------------------- --------------- FROM DIVIDENDS Dividends from net investment income (3,876,889) (13,658,022) (3,014,428) (9,351,559) ------------------- --------------- ------------------- --------------- Net decrease in net assets from dividends (3,876,889) (13,658,022) (3,014,428) (9,351,559) ------------------- --------------- ------------------- --------------- FROM CAPITAL SHARE TRANSACTIONS (NOTE 5) Proceeds from sale of shares 4,841,771 18,386,288 5,806,537 23,594,172 Reinvestment of dividends 3,748,466 13,267,833 2,985,879 3,822,498 Net asset value of shares redeemed (18,409,449) (171,583,121) (10,072,007) (91,455,967) ------------------- --------------- ------------------- --------------- Net decrease in net assets from capital share transactions (9,819,212) (139,929,000) (1,279,591) (64,039,297) ------------------- --------------- ------------------- --------------- Net decrease in net assets (6,396,616) (134,622,851) (1,192,642) (60,117,254) NET ASSETS Beginning of period 141,240,255 275,863,106 26,729,211 86,846,465 ------------------- --------------- ------------------- --------------- End of period $ 134,843,639 $ 141,240,255 $ 25,536,569 $ 26,729,211 =================== =============== =================== =============== UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) $ 552,945 $ 1,753,149 $ (571,847) $ 1,231,598 =================== =============== =================== ===============
See Accompanying Notes to Financial Statements. 31 CREDIT SUISSE INSTITUTIONAL FIXED INCOME FUND FINANCIAL HIGHLIGHTS (FOR AN INSTITUTIONAL CLASS SHARE OF THE FUND OUTSTANDING THROUGHOUT EACH PERIOD)
FOR THE SIX MONTHS ENDED FEBRUARY 29, 2004 (UNAUDITED) ------------------- PER SHARE DATA Net asset value, beginning of period $ 14.27 ------------------- INVESTMENT OPERATIONS Net investment income 0.28 Net gain (loss) on investments, future contracts, options written and foreign currency related items (both realized and unrealized) 0.48 ------------------- Total from investment operations 0.76 ------------------- LESS DIVIDENDS AND DISTRIBUTIONS Dividends from net investment income (0.40) Distributions from net realized gains -- ------------------- Total dividends and distributions (0.40) ------------------- NET ASSET VALUE, END OF PERIOD $ 14.63 =================== Total return(2) 5.48% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (000s omitted) $ 134,844 Ratio of expenses to average net assets(3) 0.45%(4) Ratio of net investment income to average net assets 3.87%(4) Decrease reflected in above operating expense ratios due to waivers/reimbursements 0.19%(4) Portfolio turnover rate 144% FOR THE YEAR ENDED AUGUST 31, ------------------------------------------------------------------ 2003 2002(1) 2001 2000 1999 ---------- ---------- ---------- ---------- ---------- PER SHARE DATA Net asset value, beginning of period $ 14.12 $ 15.79 $ 14.95 $ 15.01 $ 15.72 ---------- ---------- ---------- ---------- ---------- INVESTMENT OPERATIONS Net investment income 0.67 0.83 1.02 0.94 0.93 Net gain (loss) on investments, future contracts, options written and foreign currency related items (both realized and unrealized) 0.35 (1.27) 0.85 (0.01) (0.56) ---------- ---------- ---------- ---------- ---------- Total from investment operations 1.02 (0.44) 1.87 0.93 0.37 ---------- ---------- ---------- ---------- ---------- LESS DIVIDENDS AND DISTRIBUTIONS Dividends from net investment income (0.87) (0.83) (1.03) (0.97) (0.91) Distributions from net realized gains -- (0.40) -- (0.02) (0.17) ---------- ---------- ---------- ---------- ---------- Total dividends and distributions (0.87) (1.23) (1.03) (0.99) (1.08) ---------- ---------- ---------- ---------- ---------- NET ASSET VALUE, END OF PERIOD $ 14.27 $ 14.12 $ 15.79 $ 14.95 $ 15.01 ========== ========== ========== ========== ========== Total return(2) 7.40% (2.92)% 13.02% 6.43% 2.37% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (000s omitted) $ 141,240 $ 275,863 $ 532,627 $ 440,345 $ 350,844 Ratio of expenses to average net assets(3) 0.45% 0.45% 0.45% 0.45% 0.44% Ratio of net investment income to average net assets 4.18% 5.41% 6.71% 6.51% 5.90% Decrease reflected in above operating expense ratios due to waivers/reimbursements 0.14% 0.05% 0.06% 0.11% 0.18% Portfolio turnover rate 519% 526% 449% 520% 569%
(1) As required, effective September 1, 2001, the Fund adopted the provisions of AICPA Audit and Accounting Guide for Investment Companies and began including paydown gains and losses in interest income. The effect of this change for the year ended August 31, 2002 was to increase net investment income per share by $0.01, decrease net realized and unrealized gains and losses per share by $0.01 and increase the ratio of net investment income to average net assets from 5.37% to 5.41%. Per share ratios and supplemental data for prior periods have not been restated to reflect this change. (2) Total returns are historical and assume changes in share price and reinvestment of all dividends and distributions. Had certain expenses not been reduced during the periods shown, total returns would have been lower. Total returns for periods less than one year are not annualized. (3) Interest earned on uninvested cash balances may be used to offset portions of the transfer agent expense. For the six months ended February 29, 2004, and for the years ended August 2003, 2002, 2001, 2000 and 1999, there was no effect on the net operating expense ratio because of transfer agent credits. (4) Annualized. See Accompanying Notes to Financial Statements. 32 CREDIT SUISSE INSTITUTIONAL HIGH YIELD FUND FINANCIAL HIGHLIGHTS (FOR AN INSTITUTIONAL CLASS SHARE OF THE FUND OUTSTANDING THROUGHOUT EACH PERIOD)
FOR THE SIX MONTHS ENDED FEBRUARY 29, 2004 (UNAUDITED) ------------------- PER SHARE DATA Net asset value, beginning of period $ 10.26 ------------------- INVESTMENT OPERATIONS Net investment income 0.54 Net gain (loss) on investments (both realized and unrealized) 0.66 ------------------- Total from investment operations 1.20 ------------------- LESS DIVIDENDS Dividends from net investment income (1.24) ------------------- NET ASSET VALUE, END OF PERIOD $ 10.22 =================== Total return(1) 12.05% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (000s omitted) $ 25,537 Ratio of expenses to average net assets(2) 0.70%(4) Ratio of net investment income to average net assets 9.11%(4) Decrease reflected in above operating expense ratios due to waivers/reimbursements 0.91%(4) Portfolio turnover rate 13% FOR THE YEAR ENDED AUGUST 31, -------------------------------------------------------------------- 2003 2002(1) 2001 2000 1999 ---------- ---------- ---------- ---------- ---------- PER SHARE DATA Net asset value, beginning of period $ 9.90 $ 11.84 $ 14.11 $ 15.32 $ 16.60 ---------- ---------- ---------- ---------- ---------- INVESTMENT OPERATIONS Net investment income 1.14 1.17 1.40 1.41 1.42 Net gain (loss) on investments (both realized and unrealized) 0.41 (1.94) (2.21) (1.13) (1.33) ---------- ---------- ---------- ---------- ---------- Total from investment operations 1.55 (0.77) (0.81) 0.28 0.09 ---------- ---------- ---------- ---------- ---------- LESS DIVIDENDS Dividends from net investment income (1.19) (1.17) (1.46) (1.49) (1.37) ---------- ---------- ---------- ---------- ---------- NET ASSET VALUE, END OF PERIOD $ 10.26 $ 9.90 $ 11.84 $ 14.11 $ 15.32 ========== ========== ========== ========== ========== Total return(1) 16.96% (6.88)% (5.71)% 1.84% 0.67% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (000s omitted) $ 26,729 $ 86,846 $ 98,008 $ 94,333 $ 95,129 Ratio of expenses to average net assets(2) 0.70% 0.70% 0.70% 0.70% 0.69% Ratio of net investment income to average net assets 10.15% 10.15%(3) 11.06% 9.59% 9.10% Decrease reflected in above operating expense ratios due to waivers/reimbursements 0.40% 0.27% 0.30% 0.45% 0.35% Portfolio turnover rate 56% 52% 20% 31% 40%
(1) Total returns are historical and assume changes in share price and reinvestment of all dividends and distributions. Had certain expenses not been reduced during the periods shown, total returns would have been lower. Total returns for periods less than one year are not annualized. (2) Interest earned on uninvested cash balances may be used to offset portions of the transfer agent expense. For the six months ended February 29, 2004, and for the years ended August 2003, 2002, 2001, 2000 and 1999, there was no effect on the net operating expense ratio because of transfer agent credits. (3) During the year ended August 31, 2002, the Fund experienced an increase in its interest income of 0.67% as a result of additional accretion income not accrued in prior periods. The Fund's net investment income ratio disclosed above excludes the effect of the increase. (4) Annualized. See Accompanying Notes to Financial Statements. 33 CREDIT SUISSE INSTITUTIONAL FUNDS NOTES TO FINANCIAL STATEMENTS FEBRUARY 29, 2004 (UNAUDITED) NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Credit Suisse Institutional Funds are diversified, open-end management investment companies registered under the Investment Company Act of 1940, as amended, and are currently comprised of Credit Suisse Institutional Fixed Income Fund ("Fixed Income"), and Credit Suisse Institutional High Yield Fund ("High Yield") (each, a "Fund" and collectively, the "Funds"). Each Fund was incorporated under the laws of the State of Maryland on July 31, 1998. Fixed Income and High Yield seek high total return as their investment objective. Fixed Income and High Yield are each authorized to offer three classes of shares, Common Class, Advisor Class and Institutional Class shares, although each Fund currently offers only Institutional Class shares. A) SECURITY VALUATION -- The net asset value of each Fund is determined daily as of the close of regular trading on the New York Stock Exchange, Inc. (the "Exchange") on each day the Exchange is open for business. Debt securities with a remaining maturity greater than 60 days are valued in accordance with the price supplied by a pricing service, which may use a matrix, formula or other objective method that takes into consideration market indices, yield curves and other specific adjustments. Debt obligations that will mature in 60 days or less are valued on the basis of amortized cost, which approximates market value, unless it is determined that this method would not represent fair value. Each Fund's equity investments are valued at market value, which is generally determined using the closing price on the exchange or market on which the security is primarily traded at the time of valuation (the "Valuation Time"). If no sales are reported, equity investments are generally valued at the most recent bid quotation as of the Valuation Time or at the lowest asked quotation in the case of a short sale of securities. Securities and other assets for which market quotations are not readily available, or whose values have been materially affected by events occurring before each Fund's Valuation Time but after the close of the securities' primary markets, are valued at fair value as determined in good faith by the Board of Directors under procedures established by the Board of Directors. B) FOREIGN CURRENCY TRANSACTIONS -- The books and records of the Funds are maintained in U.S. dollars. Transactions denominated in foreign currencies are recorded at the current prevailing exchange rates. All assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the current exchange rate at the end of the period. Translation gains or losses resulting from changes in the exchange rate during the reporting period and realized gains and losses on the settlement of foreign currency transactions are reported in the results of operations for the current period. The Funds do not isolate that portion of realized 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 Funds isolate that portion of realized 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. C) SECURITY TRANSACTIONS AND INVESTMENT INCOME -- 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. D) DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- Dividends from net investment income are declared and paid quarterly. 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 carryforward, such gain will not be distributed. Income and capital gain distributions are determined in accordance with federal income tax regulations, which may differ from accounting principles generally accepted in the United States of America ("GAAP"). E) FEDERAL INCOME TAXES -- No provision is made for federal taxes as it is each Fund's intention to have the Fund 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. F) USE OF ESTIMATES -- The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure 34 of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. G) SHORT-TERM INVESTMENTS -- The Funds, together with other funds/portfolios advised by Credit Suisse Asset Management, LLC ("CSAM"), an indirect, wholly-owned subsidiary of Credit Suisse Group, pool available cash into either a short-term variable rate time deposit issued by State Street Bank and Trust Company ("SSB"), the Funds' custodian, or a money market fund advised by CSAM. The short-term time deposit issued by SSB is a variable rate account classified as a short-term investment. H) FORWARD FOREIGN CURRENCY CONTRACTS -- Each Fund may enter into forward foreign currency contracts for the purchase or sale of a specific foreign currency at a fixed price on a future date. Risks may arise upon entering into these contracts from the potential inability of counterparties to meet the terms of their contracts and from unanticipated movements in the value of a foreign currency. Each Fund will enter into forward foreign currency contracts primarily for hedging purposes. Forward foreign currency contracts are adjusted by the daily exchange rate of the underlying currency and any gains or losses are recorded for financial statement purposes as unrealized until the contract settlement date or an offsetting position is entered into. At February 29, 2004, Fixed Income had the following open forward foreign currency contracts:
FOREIGN CURRENCY EXPIRATION TO BE CONTRACT CONTRACT UNREALIZED FORWARD FOREIGN CURRENCY CONTRACT DATE PURCHASED/(SOLD) AMOUNT VALUE GAIN (LOSS) -------------------------------- ---------- ---------------- -------- -------- ----------- Australian Dollar 4/2/04 A$ 954,000 $ 705,578 $ 732,782 $ 27,204 European Economic Unit 4/2/04 EURO 547,000 690,210 679,862 (10,348) European Economic Unit 4/2/04 EURO 269,000 342,684 334,337 (8,347) European Economic Unit 4/2/04 EURO 103,000 131,214 128,018 (3,196) European Economic Unit 4/2/04 EURO (547,000) (686,906) (679,862) 7,044 European Economic Unit 4/2/04 EURO (103,000) (129,344) (128,018) 1,326 European Economic Unit 4/2/04 EURO (269,000) (341,417) (334,338) 7,079 European Economic Unit 4/2/04 EURO (250,000) (317,303) (310,723) 6,580 Japanese Yen 4/2/04 Y 107,800,000 1,011,248 988,004 (23,244) Japanese Yen 4/2/04 Y 74,000,000 699,578 678,222 (21,356) Japanese Yen 4/2/04 Y (92,600,000) (851,847) (848,693) 3,154 ------------ ------------ ----------- $ 1,253,695 $ 1,239,591 $ (14,104) ============ ============ ===========
I) TBA PURCHASE COMMITMENTS -- Each Fund may enter into "TBA" (to be announced) purchase commitments to purchase securities for a fixed price at a future date, typically not exceeding 45 days. TBA purchase commitments may be considered securities in themselves, and involve a risk of loss if the value of the security to be purchased declines prior to settlement date. This risk is in addition to the risk of decline in the Fund's other assets. Unsettled TBA purchase commitments are valued at the current market value of the underlying securities, according to the procedures described under "Security Valuation" above. J) FUTURES -- Each Fund may enter into futures contracts to the extent permitted by its investment policies and objectives. Upon entering into a futures contract, each Fund is required to deposit cash or pledge U.S. Government securities as initial margin. Subsequent payments, which are dependent on the daily fluctuations in the value of the underlying instrument, are made or received by the Fund each day (daily variation margin) and are recorded as unrealized gains or losses until the contracts are closed. When the contracts are closed, the Fund records a realized gain or loss equal to the difference between the proceeds from (or cost of) the closing transactions and the Fund's basis in the contract. Risks of entering into futures contracts for hedging purposes include the possibility that a change in the value of the contract may not correlate with the changes in the value of the underlying instruments. In addition, the purchase of a futures contract involves the risk that the Fund could lose more than the original margin deposit and subsequent payments required for a futures transaction. At February 29, 2004, Fixed Income had the following open futures contracts: 35
UNREALIZED FUTURES NUMBER OF EXPIRATION CONTRACT CONTRACT APPRECIATION/ CONTRACTS CONTRACTS DATE AMOUNT VALUE (DEPRECIATION) --------------------------------- --------- ---------- ------------- -------------- -------------- S&P 500 Index Futures 1 03/18/04 $ 285,508 $ 286,150 $ 642 US Treasury Bonds Futures 35 06/21/04 3,922,091 3,935,313 13,222 US Treasury 2 Year Notes Futures 76 06/29/04 16,284,572 16,304,375 19,803 Euro Futures 48 03/19/04 6,535,765 6,710,706 174,941 ------------- -------------- ----------- 27,027,936 27,236,544 208,608 ------------- -------------- ----------- US Treasury 10 Year Notes Futures (51) 06/30/04 (5,761,571) (5,807,625) (46,054) US Treasury 5 Year Notes Futures (51) 06/21/04 (5,696,952) (5,732,719) (35,767) ------------- -------------- ----------- (11,458,523) (11,540,344) (81,821) ------------- -------------- ----------- $ 15,569,413 $ 15,696,200 $ (126,787) ============= ============== ===========
K) OPTIONS -- Fixed Income may purchase and write (sell) call and put options on securities, currencies and swap agreements (options on swap agreements are commonly known as "swaptions"). The Fund may write covered and uncovered put and call options and purchase put and call options for hedging purposes or to increase total return. The risk associated with purchasing an option is that the Fund pays a premium whether or not the option is exercised. Additionally, the Fund bears the risk of loss of premium and change in market value should the counterparty not perform under the contract. Put and call options purchased are accounted for in the same manner as portfolio securities. The cost of securities acquired through the exercise of call options is increased by the premium paid. The proceeds from securities sold through the exercise of put options are decreased by the premium paid. When the Fund writes an option, the premium received by the Fund is recorded as a liability and is subsequently adjusted to the current market value of the option written. Premiums received from writing options that expire unexercised are recorded by the Fund on the expiration date as realized gains from options transactions. The difference between the premium received and the amount paid on effecting a closing purchase transaction, including brokerage commissions, is also treated as a realized gain, or if the premium received is less than the amount paid for the closing purchase transaction, as a realized loss. If a call option is exercised, the premium received is added to the proceeds from the sale of the underlying security in determining whether the Fund has realized a gain or loss. If a put option is exercised, the premium received reduces the cost basis of the security purchased by the Fund. The risk involved in writing an option is that, if the option is exercised, the underlying security could then be purchased or sold by the Fund at a disadvantageous price. Uncovered options are riskier than covered options because there is no underlying security held by the Fund that can act as a partial hedge. Uncovered calls have speculative characteristics and the potential for loss is unlimited. There is also a risk that the securities on which the option is written may not be available for purchase if the call option is exercised. Uncovered put options have speculative characteristics and the potential loss is substantial. Exchange-traded options are valued at the last sale price in the market where such contracts are principally traded. OTC equity/index options are priced according to the contract specifications (days to expiration, current spot index level, interest rates, dividends, strike price) using the Black-Scholes pricing model, modified for dividends. The volatility input assumption is interpolated from the previous day's price. On a weekly basis and at month end, CSAM receives a price indication sheet from various broker dealers and inputs these prices to update the volatility. Transactions in written options for puts and calls for the six months ended February 29, 2004 were as follows:
NUMBER OF CONTRACTS PREMIUMS RECEIVED ------------------- ----------------- Options outstanding at beginning of period -- $ -- Options written 351 249,246 Options expired (59) (20,414) Options exercised (59) (11,623) ---- ---------- Options outstanding at end of period 233 $ 217,209 ==== ==========
36 L) SECURITIES LENDING -- Loans of securities are required at all times to be secured by collateral at least equal to 102% of the market value of domestic securities on loan (including any accrued interest thereon) and 105% of the market value of foreign securities on loan (including any accrued interest thereon). Cash collateral received by each Fund in connection with securities lending activity may be pooled together with cash collateral for other funds/portfolios advised by CSAM and may be invested in a variety of investments, including certain CSAM-advised funds, funds advised by SSB, the Funds' securities lending agent or money market instruments. However, in the event of default or bankruptcy by the other party to the agreement, realization and/or retention of the collateral may be subject to legal proceedings. The market value of securities on loan to brokers and the value of collateral held by each Fund with respect to such loans at February 29, 2004 are as follows:
MARKET VALUE OF VALUE OF FUND SECURITIES LOANED COLLATERAL RECEIVED ----------------- ------------------------ ------------------- Fixed Income $ 1,642,602 $ 1,691,553 High Yield 2,588,334 2,708,155
Prior to March 17, 2004, Credit Suisse First Boston ("CSFB"), an affiliate of CSAM, had been engaged by the Funds to act as each Fund's securities lending agent. Securities lending income is accrued as earned. Effective March 17, 2004, SSB has been engaged by the Funds to act as the Funds' securities lending agent. The Funds' securities lending arrangement provides that the Funds and SSB will share the net income earned from securities lending activities with the Funds receiving 70% and SSB receiving 30% of the earnings from the investment of cash collateral or any other securities lending income in accordance with the provisions of the securities lending agency agreement. M) OTHER -- Lower-rated debt securities (commonly known as "junk bonds") possess speculative characteristics and are subject to greater market fluctuations and risk of lost income and principal than higher-rated debt securities for a variety of reasons. Also, during an economic downturn or substantial period of rising interest rates, highly leveraged issuers may experience financial stress which would adversely affect their ability to service their principal and interest payment obligations, to meet projected business goals and to obtain additional financing. In addition, periods of economic uncertainty and changes can be expected to result in increased volatility of market prices of lower-rated debt securities and (to the extent a Fund invests in junk bonds) each Funds' net asset value. The Funds 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. The Funds 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 Funds accrue such taxes when the related income or gains are earned. NOTE 2. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES CSAM serves as investment adviser for each Fund. For its investment advisory services, CSAM is entitled to receive a fee from each Fund based on the following fee schedule:
FUND ANNUAL RATE ------------------------ ---------------------------------- Fixed Income 0.375% of average daily net assets High Yield 0.70% of average daily net assets
37 NOTE 2. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES For the six months ended February 29, 2004, investment advisory fees earned, voluntarily waived, and expenses reimbursed for each Fund were as follows:
GROSS NET ADVISORY ADVISORY EXPENSE FUND FEE WAIVER FEE REIMBURSEMENT ------------------------ ----------- ------------ ----------- ------------- Fixed Income $ 258,431 $ (129,797) $ 128,634 $ -- High Yield 92,782 (92,782) -- (27,585)
Credit Suisse Asset Management Securities, Inc. ("CSAMSI"), an affiliate of CSAM, and SSB serve as co-administrators to the Funds. No compensation is payable by the Funds to CSAMSI for co-administrative services. For its co-administrative services, SSB receives a fee, exclusive of out-of-pocket expenses, based upon the following fee schedule calculated in total for all the Credit Suisse funds/portfolios co-administered by SSB and allocated based upon relative average net assets of each fund/portfolio subject to an annual minimum fee.
AVERAGE DAILY NET ASSETS ANNUAL RATE -------------------------------- ---------------------------------- First $5 billion 0.050% of average daily net assets Next $5 billion 0.035% of average daily net assets Over $10 billion 0.020% of average daily net assets
For the six months ended February 29, 2004, co-administrative service fees earned by SSB (including out-of-pocket expenses) were as follows:
FUND CO-ADMINISTRATION FEE ------------------------ --------------------- Fixed Income $ 53,938 High Yield 21,998
In addition to serving as each Fund's co-administrator, CSAMSI currently serves as distributor of each Fund's shares without compensation. For the six months ended February 29, 2004, CSFB received fees for its securities lending activities as follows:
FUND AMOUNT ------------------------ --------- Fixed Income $ 1,214 High Yield 2,202
Merrill Corporation ("Merrill"), an affiliate of CSAM, has been engaged by the Funds to provide certain financial printing and fulfillment services. For the six months ended February 29, 2004, Merrill was paid for its services to the Funds as follows:
FUND AMOUNT ------------------------ --------- Fixed Income $7,166 High Yield 7,166
NOTE 3. LINE OF CREDIT The Funds, together with other funds/portfolios advised by CSAM (collectively, the "Participating Funds"), participate in a $100 million committed, unsecured line of credit facility ("Credit Facility") for temporary or emergency purposes with Deutsche Bank, A.G. as administrative agent and syndication agent and SSB as operations agent. Under the terms of the Credit Facility, the Participating Funds pay an aggregate commitment fee at a rate of 0.10% per annum on the average unused amount of the Credit Facility, which is allocated among the Participating Funds in such manner as is determined by the governing Boards of the Participating Funds. In addition, the Participating Funds pay interest on borrowings at the 38 Federal Funds rate plus 0.50%. At February 29, 2004, the Funds had no loans outstanding under the Credit Facility. During the six months ended February 29, 2004, the Funds had borrowings under the Credit Facility as follows:
MAXIMUM AVERAGE DAILY WEIGHTED AVERAGE DAILY LOAN FUND LOAN BALANCE INTEREST RATE OUTSTANDING ------------------------ ------------- ---------------- ----------- Fixed Income -- -- -- High Yield $ 1,185,953 1.53% $ 2,066,000
NOTE 4. PURCHASES AND SALES OF SECURITIES For the six months ended February 29, 2004, purchases and sales of investment securities (excluding short-term investments) and U.S. Government and Agency Obligations were as follows:
U.S. GOVERNMENT AND INVESTMENTS AGENCY OBLIGATIONS ------------------------------- ------------------------------- FUND PURCHASES SALES PURCHASES SALES ------------------------ -------------- -------------- -------------- -------------- Fixed Income $ 205,448,055 $ 211,113,603 $ 186,320,856 $ 182,655,133 High Yield 3,373,163 8,517,795 -- --
In connection with a review of the Funds, CSAM became aware of certain portfolio transactions undertaken on behalf of the Funds with respect to which the Funds paid commissions. Upon further analysis, CSAM believes that such transactions could have been effected in a more efficient manner for the Funds and, as a result, CSAM paid the amount of the commissions, with interest, to the Funds. The payment amount did not have a material effect on the Funds' net asset value per share. At February 29, 2004, the identified cost for federal income tax purposes, as well as the gross unrealized appreciation from investments for those securities having an excess of value over cost, gross unrealized depreciation from investments for those securities having an excess of cost over value and the net unrealized appreciation (depreciation) from investments were as follows:
GROSS GROSS NET UNREALIZED IDENTIFIED UNREALIZED UNREALIZED APPRECIATION FUND COST APPRECIATION DEPRECIATION (DEPRECIATION) ------------------------ -------------- ------------ ------------- -------------- Fixed Income $ 157,202,226 $ 3,779,826 $ (419,492) $ 3,360,334 High Yield 31,757,367 1,784,467 (5,827,273) (4,042,806)
NOTE 5. CAPITAL SHARE TRANSACTIONS Fixed Income and High Yield are each authorized to issue three billion full and fractional shares of capital stock, $.001 par value per share. Transactions in capital shares for each Fund were as follows:
FIXED INCOME FUND ------------------------------------------------------ INSTITUTIONAL CLASS ------------------------------------------------------ FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED FEBRUARY 29, 2004 (UNAUDITED) AUGUST 31, 2003 ----------------------------- ------------------ Shares sold 334,095 1,281,297 Shares issued in reinvestment of dividends 260,165 936,435 Shares redeemed (1,275,059) (11,864,210) ---------- ----------- Net decrease (680,799) (9,646,478) ========== ===========
39
HIGH YIELD FUND ------------------------------------------------------ INSTITUTIONAL CLASS ------------------------------------------------------ FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED FEBRUARY 29, 2004 (UNAUDITED) AUGUST 31, 2003 ----------------------------- ------------------ Shares sold 568,618 2,400,294 Shares issued in reinvestment of dividends 299,074 396,530 Shares redeemed (973,048) (8,965,487) ---------- ----------- Net decrease (105,356) (6,168,663) ========== ===========
On February 29, 2004, the number of shareholders that held 5% or more of the outstanding shares of each Fund was as follows:
NUMBER OF APPROXIMATE PERCENTAGE FUND SHAREHOLDERS OF OUTSTANDING SHARES ------------------------ ------------ ---------------------- Fixed Income 3 86% High Yield 3 74%
Some of the shareholders are omnibus accounts, which hold shares on behalf of several individual shareholders. NOTE 6. CONTINGENCIES In the normal course of business, each Fund may provide general indemnifications pursuant to certain contracts and organizational documents. The Funds' maximum exposure under these arrangements is dependent on future claims that may be made against the Funds and, therefore, cannot be estimated; however, based on experience, the risk of loss from such claims is considered remote. 40 CREDIT SUISSE INSTITUTIONAL FUNDS PRIVACY POLICY NOTICE (unaudited) IMPORTANT PRIVACY CHOICES FOR CONSUMERS We are committed to maintaining the privacy of every current and prospective customer. We recognize that you entrust important personal information to us, and we wish to assure you that we take seriously our responsibilities in protecting and safeguarding this information. In connection with making available investment products and services to current and potential customers, we may obtain nonpublic personal information about you. This information may include your name, address, e-mail address, social security number, account number, assets, income, financial situation, transaction history and other personal information. We may collect nonpublic information about you from the following sources: - Information we receive on applications, forms, questionnaires, web sites, agreements or in the course of establishing or maintaining a customer relationship; and - Information about your transactions with us, our affiliates, or others. We do not disclose any nonpublic personal information about our customers or former customers to anyone, except with your consent or as otherwise permitted by law. RESTRICT INFORMATION SHARING WITH AFFILIATES: In cases where we believe that additional products and services may be of interest to you, we may share the information described above with our affiliates unless you say "No." / / No, please do not share personal and financial information with your affiliated companies. [If you check this box, you must send this notice back to us with your name, address and account number to Credit Suisse Funds, 466 Lexington Avenue, New York, New York 10017.] We may also disclose this information to firms that perform services on our behalf. These agents and service providers are required to treat the information confidentially and use it only for the purpose for which it is provided. We restrict access to nonpublic personal information about you to those employees, agents or other parties who need to know that information to provide products or services to you or in connection with your investments with or through us. We maintain physical, electronic and procedural safeguards that comply with federal standards to guard your nonpublic personal information. NOTE: THIS NOTICE IS PROVIDED TO CLIENTS AND PROSPECTIVE CLIENTS OF CREDIT SUISSE ASSET MANAGEMENT, LLC ("CSAM"), CSAM CAPITAL INC., AND CREDIT SUISSE ASSET MANAGEMENT SECURITIES, INC., AND SHAREHOLDERS AND PROSPECTIVE SHAREHOLDERS IN CSAM SPONSORED AND ADVISED INVESTMENT COMPANIES, INCLUDING CREDIT SUISSE FUNDS, AND OTHER CONSUMERS AND CUSTOMERS, AS APPLICABLE. THIS NOTICE IS NOT INTENDED TO BE INCORPORATED IN ANY OFFERING MATERIALS BUT IS MERELY A STATEMENT OF OUR CURRENT PRIVACY POLICY, AND MAY BE AMENDED FROM TIME TO TIME UPON NOTICE TO YOU. THIS NOTICE IS DATED AS OF FEBRUARY 11, 2004. 41 CREDIT SUISSE INSTITUTIONAL FUNDS PROXY VOTING (unaudited) The policies and procedures that the Funds use to determine how to vote proxies relating to their portfolio securities are available: - By calling 1-800-222-8977 - On the Funds' website, www.csam.com - On the website of the Securities and Exchange Commission, http://www.sec.gov. 42 P.O. Box 8500, Boston, MA 02266-8500 800-222-8977 CREDIT SUISSE ASSET MANAGEMENT SECURITIES, INC., DISTRIBUTOR. CSIUS-3-0204 ITEM 2. CODE OF ETHICS. Item 2 is inapplicable to a semi-annual report on Form N-CSR. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. Item 3 is inapplicable to a semi-annual report on Form N-CSR. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Item 4 is inapplicable to a semi-annual report on Form N-CSR. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. Item 5 of Form N-CSR is inapplicable to the registrant. ITEM 6. SCHEDULE OF INVESTMENTS. Item 6 of Form N-CSR is not yet applicable to the registrant. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Form 7 of Form N-CSR is inapplicable to the registrant. ITEM 8. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. Item 8 of Form N-CSR is inapplicable to the registrant. ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. The Nominating Committee recommends Board member candidates. Shareholders of the registrant may also submit nominees that will be considered by the Committee. Recommendations should be mailed to the registrant's Secretary, c/o Credit Suisse Asset Management, LLC, 466 Lexington Avenue, New York, NY 10017. Any submission should include at a minimum the following information: the name, age, business address, residence address and principal occupation or employment of such individual; the class, series and number of shares of the registrant that are beneficially owned by such individual; the date such shares were acquired and the investment intent of such acquisition; whether such shareholder believes such individual is, or is not, an "interested person" of the registrant (as defined in the Investment Company Act of 1940) and information regarding such individual that is sufficient, in the Committee's discretion, to make such determination; and all other information relating to such individual that is required to be disclosed in solicitation of proxies for election of directors in an election contest (even if an election contest is not involved) or is otherwise required pursuant to the rules for proxy materials under the Securities Exchange Act of 1934. ITEM 10. CONTROLS AND PROCEDURES. (a) As of a date within 90 days from the filing date of this report, the principal executive officer and principal financial officer concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the "Act")) were effective based on their evaluation of the disclosure controls and procedures required by Rule 30a-3(b) under the Act and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934. (b) There were no changes in registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the registrant's last fiscal half-year that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting. ITEM 11. EXHIBITS. (a)(1) Not applicable. (a)(2) The certifications of the registrant as required by Rule 30a-2(a) under the Act are exhibits to this report. (a)(3) Not applicable. (b) The certifications of the registrant as required by Rule 30a-2(b) under the Act are an exhibit to this report. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. CREDIT SUISSE INSTITUTIONAL FIXED INCOME FUND, INC. /s/ Joseph D. Gallagher ----------------------- Name: Joseph D. Gallagher Title: Chief Executive Officer Date: April 29, 2004 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. /s/ Joseph D. Gallagher ----------------------- Name: Joseph D. Gallagher Title: Chief Executive Officer Date: April 29, 2004 /s/ Michael A. Pignataro ------------------------ Name: Michael A. Pignataro Title: Chief Financial Officer Date: April 29, 2004 EX-99.CERT 2 a2134553zex-99_cert.txt EX-99.CERT EXHIBIT 99.CERT EXHIBIT 11(a)(2) CERTIFICATIONS I, Michael A. Pignataro, certify that: 1. I have reviewed this report on Form N-CSR of Credit Suisse Institutional Fixed Income Fund, Inc.; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (c) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: April 29, 2004 /s/ Michael A. Pignataro - ------------------------ Michael A. Pignataro Chief Financial Officer I, Joseph D. Gallagher, certify that: 1. I have reviewed this report on Form N-CSR of Credit Suisse Institutional Fixed Income Fund, Inc.; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (c) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected. or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial data information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: April 29, 2004 /s/ Joseph D. Gallagher - ----------------------- Joseph D. Gallagher Chief Executive Officer EX-99.906CERT 3 a2134553zex-99_906cert.txt EX-99.906CERT EXHIBIT 99.906CERT EXHIBIT 11(b) SECTION 906 CERTIFICATIONS SECTION 906 CERTIFICATION Joseph D. Gallagher, Chief Executive Officer, and Michael A. Pignataro, Chief Financial Officer, of Credit Suisse Institutional Fixed Income Fund, Inc. (the "Fund"), each certify to his knowledge that: (1) The Fund's periodic report on Form N-CSR for the period ended February 29, 2004 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and (2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Fund. /s/ Joseph D. Gallagher /s/ Michael A. Pignataro - ----------------------- ------------------------ Joseph D. Gallagher Michael A. Pignataro Chief Executive Officer Chief Financial Officer April 29, 2004 April 29, 2004 A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to the Fund and will be retained by the Fund and furnished to the Securities and Exchange Commission or its staff upon request. -----END PRIVACY-ENHANCED MESSAGE-----