N-CSR 1 file001.txt CREDIT SUISSE LARGE CAP BLEND FUND, INC. 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. 811-08921 --------------------------------------------------------------------- CREDIT SUISSE LARGE CAP BLEND 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) J. Kevin Gao, Esq. Credit Suisse Large Cap Blend 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: December 31st Date of reporting period: January 1, 2005 to December 31, 2005 ITEM 1. REPORTS TO STOCKHOLDERS. CREDIT SUISSE [LOGO] CREDIT SUISSE FUNDS Annual Report December 31, 2005 o CREDIT SUISSE LARGE CAP BLEND FUND The Fund's investment objectives, risks, charges and expenses (which should be considered carefully before investing), and more complete information about the Fund, are provided in the Prospectus, which should be read carefully before investing. You may obtain additional copies by calling 800-927-2874 or by writing to Credit Suisse Funds, P.O. Box 55030, Boston, MA 02205-5030. Credit Suisse Asset Management Securities, Inc., Distributor, is located at 466 Lexington Ave., New York, NY 10017-3140. Credit Suisse Funds are advised by Credit Suisse Asset Management, LLC. INVESTORS IN THE CREDIT SUISSE FUNDS SHOULD BE AWARE THAT THEY MAY BE ELIGIBLE TO PURCHASE COMMON CLASS AND/OR ADVISOR CLASS SHARES (WHERE OFFERED) DIRECTLY OR THROUGH CERTAIN INTERMEDIARIES. SUCH SHARES ARE NOT SUBJECT TO A SALES CHARGE BUT MAY BE SUBJECT TO AN ONGOING SERVICE AND DISTRIBUTION FEE OF UP TO 0.50% OF AVERAGE DAILY NET ASSETS. INVESTORS IN THE CREDIT SUISSE FUNDS SHOULD ALSO BE AWARE THAT THEY MAY BE ELIGIBLE FOR A REDUCTION OR WAIVER OF THE SALES CHARGE WITH RESPECT TO CLASS A, B OR C SHARES. FOR MORE INFORMATION, PLEASE REVIEW THE RELEVANT PROSPECTUSES OR CONSULT YOUR FINANCIAL REPRESENTATIVE. THE VIEWS OF THE FUND'S MANAGEMENT ARE AS OF THE DATE OF THE LETTER AND THE FUND HOLDINGS DESCRIBED IN THIS DOCUMENT ARE AS OF DECEMBER 31, 2005; 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 ("CREDIT SUISSE") OR ANY AFFILIATE, ARE NOT FDIC-INSURED AND ARE NOT GUARANTEED BY CREDIT SUISSE OR ANY AFFILIATE. FUND INVESTMENTS ARE SUBJECT TO INVESTMENT RISKS, INCLUDING LOSS OF YOUR INVESTMENT. CREDIT SUISSE LARGE CAP BLEND FUND ANNUAL INVESTMENT ADVISER'S REPORT December 31, 2005 (unaudited) -------------------------------------------------------------------------------- January 26, 2006 Dear Shareholder: PERFORMANCE SUMMARY 01/01/05 - 12/31/05 SHARE CLASS/BENCHMARK PERFORMANCE Common 1 2.70% Class A 1,2 2.69% Class B 1,2 1.91% Class C 1,2 1.91% S&P 500 Index 3 4.91% PERFORMANCE FOR THE FUND'S CLASS A, CLASS B AND CLASS C SHARES IS WITHOUT THE MAXIMUM SALES CHARGE OF 5.75%, 4.00% AND 1.00%, RESPECTIVELY. 2 Effective August 8, 2005, the Fund's name was changed to Credit Suisse Large Cap Blend Fund. With its new policies, the Fund focuses on striving to identify companies with favorable growth or value characteristics using both fundamental and quantitative stock analyses. The portfolio managers will assemble what they believe is an optimal blend of growth and value stocks that is well diversified and presents a desired capital appreciation potential and risk level relative to the Fund's S&P 500 Index benchmark. The portion of the Fund's assets invested in growth and value stocks will vary over time, and, depending on market conditions the Fund may be predominantly invested in one or the other. THE MARKET: POSITIVE DESPITE RISING ENERGY COSTS, INTEREST RATES The period was an overall positive one for equities. Stocks initially struggled, but rallied into the summer, aided by benign inflation data and good earnings reports from a number of visible companies. To be sure, headwinds were ever-present, notably in the form of hurricane activity, surging energy prices and a Federal Reserve that continued to raise short-term interest rates in small but steady increments. In the face of all this, the economy nonetheless appeared resilient, at least as of late 2005: Third-quarter GDP growth was reported at an annualized rate of 4.1%, the tenth consecutive quarter of 3% or greater growth. The earnings backdrop remained generally supportive late in the year. In the market, high energy prices helped drive the outperformance of energy related stocks, which, despite some late-period weakness, outpaced all other economic sectors in the period. This was reflected in the outperformance of 1 CREDIT SUISSE LARGE CAP BLEND FUND ANNUAL INVESTMENT ADVISER'S REPORT (CONTINUED) December 31, 2005 (unaudited) -------------------------------------------------------------------------------- value stocks over growth stocks, as energy companies comprise a relatively large portion of the value universe. Mid-capitalization stocks generally outperformed both large- and small-cap stocks for the period. STRATEGIC REVIEW: CONSUMER STOCKS COUNTERED BY INDUSTRIAL, HEALTH CARE HOLDINGS The Fund participated in the market's rise but trailed its benchmark in the period. Stocks that detracted from the Fund's performance included its industrial and health care holdings. In addition, while the Fund's utilities stocks had good performance in absolute terms, they trailed the utilities component of the Fund's benchmark. On the positive side, the Fund's consumer discretionary holdings performed relatively well, with solid showings from its retail companies. The Fund's consumer staples stocks performed well in both relative and absolute terms. With regard to recent portfolio activity, our purchases have included Grant Prideco (0.8% of the Fund's net assets as of December 31, 2005), a manufacturer of metal tubes used in energy exploration and production. We initiated the position based on our view on its long-term growth prospects. Our sales included XM Satellite Radio, based on valuation in the wake of good performance along with our concerns over the company's subscription growth going forward. The Credit Suisse Large Cap Core Team Stephen J. Kaszynski Jeffrey T. Rose William D. Butler THE VALUE OF INVESTMENTS GENERALLY WILL FLUCTUATE IN RESPONSE TO MARKET MOVEMENTS. 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. 2 CREDIT SUISSE LARGE CAP BLEND FUND ANNUAL INVESTMENT ADVISER'S REPORT (CONTINUED) December 31, 2005 (unaudited) -------------------------------------------------------------------------------- COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE CREDIT SUISSE LARGE CAP BLEND FUND 1 COMMON CLASS SHARES AND THE S&P 500 INDEX 3 FROM INCEPTION (10/30/98). [LINE GRAPH] Credit Suisse Large Cap Blend Fund 1 -- Date Common Class S&P 500 Index 3 ------- -------------------- ----------------- 10/98 10000 10000 10000 10117 10765 10731 11220 11355 12/98 11289 11823 11056 11455 11634 11916 12437 12369 11960 12083 12744 12744 12155 12356 12619 12298 12286 11958 12929 12718 13844 12978 12/99 14292 13741 13782 13050 14310 12804 15568 14056 15780 13633 15780 13353 16105 13683 16000 13469 16836 14305 16642 13550 16809 13493 15260 12429 12/00 15076 12490 15720 12933 14148 11753 12841 11009 13817 11864 14148 11944 13893 11653 13438 11539 12680 10816 11506 9943 11696 10132 12832 10910 12/01 12766 11005 12529 10845 12140 10636 12539 11036 11855 10367 12017 10290 11067 9557 10128 8812 10118 8870 9008 7906 9757 8602 10374 9108 12/02 9721 8573 9436 8348 9341 8223 9465 8303 10007 8987 10396 9461 10501 9582 10757 9751 10852 9941 10605 9835 11175 10392 11327 10483 12/03 11802 11033 11755 11235 11840 11391 11660 11220 11527 11043 11650 11195 11888 11413 11479 11035 11422 11080 11565 11200 11745 11371 12268 11831 12/04 12644 12233 12441 11935 12664 12186 12481 11971 12176 11743 12441 12117 12481 12134 12806 12586 12694 12471 12794 12572 12498 12362 12947 12829 12/05 12984 12834 COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE CREDIT SUISSE LARGE CAP BLEND FUND 1 CLASS A SHARES 2, CLASS B SHARES 2, CLASS C SHARES 2 AND THE S&P 500 INDEX 3,4 FROM INCEPTION (07/31/01). [LINE GRAPH]
Credit Suisse Large Credit Suisse Large Credit Suisse Large Cap Blend Fund 1 Cap Blend Fund 1 Cap Blend Fund 1 -- Class A 2 -- Class B 2 -- Class C 2 (with maximum (with maximum contingent (with maximum contingent Date sales charge) deferred sales charge) deferred sales charge) S&P 500 Index 3,4 ------- -------------------- ------------------------ ------------------------ ----------------- 07/01 9425 10000 10000 10000 8891 9429 9436 9374 8068 8555 8548 8617 8207 8696 8682 8781 9011 9535 9521 9455 12/01 8958 9477 9463 9538 8792 9293 9279 9399 8519 8997 8990 9217 8798 9293 9279 9564 8319 8778 8764 8984 8432 8884 8877 8918 06/02 7767 8178 8178 8283 7108 7480 7473 7637 7101 7473 7452 7687 6323 6647 6626 6852 6855 7205 7183 7455 7288 7649 7628 7894 12/02 6826 7162 7141 7430 6626 6951 6929 7235 6560 6873 6859 7127 6646 6965 6943 7196 7026 7353 7339 7789 7305 7642 7621 8199 06/03 7372 7713 7684 8304 7552 7889 7868 8450 7618 7953 7931 8615 7452 7776 7755 8524 7851 8185 8164 9006 7951 8284 8263 9086 12/03 8291 8630 8609 9562 8257 8595 8574 9737 8317 8651 8630 9872 8191 8510 8489 9724 8098 8411 8390 9571 8178 8489 8468 9702 06/04 8351 8658 8637 9891 8064 8355 8341 9564 8024 8312 8291 9602 8118 8404 8390 9706 8251 8538 8517 9855 8617 8905 8884 10253 12/04 8880 9180 9159 10602 8738 9022 9001 10344 8895 9180 9159 10561 8774 9045 9024 10374 8553 8819 8797 10178 8738 8999 8978 10501 06/05 8766 9030 9008 10516 8994 9256 9235 10907 8916 9165 9144 10808 8986 9230 9209 10895 8778 9019 8998 10714 9093 9336 9315 11119 12/05 9119 9355 9334 11123
3 CREDIT SUISSE LARGE CAP BLEND FUND ANNUAL INVESTMENT ADVISER'S REPORT (CONTINUED) December 31, 2005 (unaudited) -------------------------------------------------------------------------------- AVERAGE ANNUAL RETURNS AS OF DECEMBER 31, 2005 1 SINCE 1 YEAR 5 YEARS INCEPTION ------ ------- --------- Common Class 2.70% (2.94)% 3.71% Class A Without Sales Charge 2.69% -- (0.74)% Class A With Maximum Sales Charge (3.21)% -- (2.06)% Class B Without CDSC 1.91% -- (1.50)% Class B With CDSC (2.01)% -- (1.50)% Class C Without CDSC 1.91% -- (1.55)% Class C With CDSC 0.93% -- (1.55)% RETURNS REPRESENT PAST PERFORMANCE AND INCLUDE CHANGE IN SHARE PRICE AND REINVESTMENTS OF DIVIDENDS AND CAPITAL GAINS. PAST PERFORMANCE CANNOT GUARANTEE FUTURE RESULTS. THE CURRENT PERFORMANCE OF THE FUND 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. THE PERFORMANCE RESULTS DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH-END IS AVAILABLE AT WWW.CREDIT-SUISSE.COM/US. _____________ 1 Fee waivers and/or expense reimbursements may reduce expenses for the Fund, without which performance would be lower. Waivers and/or reimbursements may be discontinued at any time. 2 Total return for Class A shares for the reporting period, based on offering price (with maximum sales charge of 5.75%) was down 3.21%. Total return for Class B shares for the reporting period, based on redemption value (including contingent deferred sales charge of 4.00%), was down 2.01%. Total return for Class C shares for the reporting period, based on redemption value (including contingent deferred sales charge of 1.00%), was 0.93%. 3 The Standard & Poor's 500 Index is an unmanaged index (with no defined investment objective) of common stocks, includes reinvestment of dividends, and is a registered trademark of McGraw-Hill Co., Inc. Investors cannot invest directly in an index. 4 Performance for the index is not available for the period 7/31/01 (inception date). For that reason, performance is shown for the period beginning 8/1/01. 4 CREDIT SUISSE LARGE CAP BLEND FUND ANNUAL INVESTMENT ADVISER'S REPORT (CONTINUED) December 31, 2005 (unaudited) -------------------------------------------------------------------------------- INFORMATION ABOUT YOUR FUND'S EXPENSES As an investor of the Fund, you incur two types of costs: ongoing expenses and transaction costs. Ongoing expenses include management fees, distribution and service (12b-1) fees and other Fund expenses. Examples of transaction costs include sales charges (loads), redemption fees and account maintenance fees, which are not shown in this section and which would result in higher total expenses. The following table is intended to help you understand your ongoing expenses of investing in the Fund and to help you compare these expenses with the ongoing expenses of investing in other mutual funds. The table is based on an investment of $1,000 made at the beginning of the six month period ended December 31, 2005. The table illustrates your Fund's expenses in two ways: o ACTUAL FUND RETURN. This helps you estimate the actual dollar amount of ongoing expenses paid on a $1,000 investment in the Fund using the Fund's actual return during the period. To estimate the expenses you paid over the period, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the "Expenses Paid per $1,000" line under the share class you hold. o HYPOTHETICAL 5% FUND RETURN. This helps you to compare your Fund's ongoing expenses with those of other mutual funds using the Fund's actual expense ratio and a hypothetical rate of return of 5% per year before expenses. Examples using a 5% hypothetical fund return may be found in the shareholder reports of other mutual funds. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. Please note that the expenses shown in these tables are meant to highlight your ongoing expenses only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. If these transaction costs had been included, your costs would have been higher. The "Expenses Paid per $1,000" line of the tables is useful in comparing ongoing expenses only and will not help you determine the relative total expenses of owning different funds. 5 CREDIT SUISSE LARGE CAP BLEND FUND ANNUAL INVESTMENT ADVISER'S REPORT (CONTINUED) December 31, 2005 (unaudited) -------------------------------------------------------------------------------- EXPENSES AND VALUE OF A $1,000 INVESTMENT FOR THE SIX MONTH PERIOD ENDED DECEMBER 31, 2005 -------------------------------------------------------------------------------- COMMON ACTUAL FUND RETURN CLASS CLASS A CLASS B CLASS C --------- --------- --------- --------- Beginning Account Value 7/1/05 $1,000.00 $1,000.00 $1,000.00 $1,000.00 Ending Account Value 12/31/05 $1,040.30 $1,040.20 $1,036.10 $1,036.20 Expenses Paid per $1,000* $ 6.69 $ 6.69 $ 10.52 $ 10.52 HYPOTHETICAL 5% FUND RETURN Beginning Account Value 7/1/05 $1,000.00 $1,000.00 $1,000.00 $1,000.00 Ending Account Value 12/31/05 $1,018.65 $1,018.65 $1,014.87 $1,014.87 Expenses Paid per $1,000* $ 6.61 $ 6.61 $ 10.41 $ 10.41 COMMON CLASS CLASS A CLASS B CLASS C --------- --------- --------- --------- ANNUALIZED EXPENSE RATIOS* 1.30% 1.30% 2.05% 2.05% ______________ * EXPENSES ARE EQUAL TO THE FUN0D'S ANNUALIZED EXPENSE RATIO FOR EACH SHARE CLASS, MULTIPLIED BY THE AVERAGE ACCOUNT VALUE OVER THE PERIOD, MULTIPLIED BY THE NUMBER OF DAYS IN THE MOST RECENT FISCAL HALF YEAR PERIOD, THEN DIVIDED BY 365. THE "EXPENSE PAID PER $1,000" AND THE "ANNUALIZED EXPENSE RATIOS" IN THE TABLES ARE BASED ON ACTUAL EXPENSES PAID BY THE FUND DURING THE PERIOD, NET OF FEE WAIVERS AND/OR EXPENSE REIMBURSEMENTS. IF THOSE FEE WAIVERS AND/OR EXPENSE REIMBURSEMENTS HAD NOT BEEN IN EFFECT, THE FUND'S ACTUAL EXPENSES WOULD HAVE BEEN HIGHER. For more information, please refer to the Fund's prospectus. 6 CREDIT SUISSE LARGE CAP BLEND FUND ANNUAL INVESTMENT ADVISER'S REPORT (CONTINUED) December 31, 2005 (unaudited) -------------------------------------------------------------------------------- SECTOR BREAKDOWN* [BAR CHART] Financials 21.3% Industrial Technology 15.7% Health Care 13.7% Industrials 12.3% Energy 10.5% Consumer Discretionary 8.8% Consumer Staples 8.2% Telecomm Services 3.1% Materials 3.0% Utilities 2.6% Short-Term Investment 0.8% _____________ * Expressed as a percentage of total investments (excluding security lending collateral) and may vary over time. 7 CREDIT SUISSE LARGE CAP BLEND FUND SCHEDULE OF INVESTMENTS December 31, 2005 -------------------------------------------------------------------------------- NUMBER OF SHARES VALUE ------------ ------------ COMMON STOCKS (99.3%) AEROSPACE & DEFENSE (6.0%) Boeing Co. 17,100 $ 1,201,104 Goodrich Corp. 16,200 665,820 L-3 Communications Holdings, Inc. 11,100 825,285 United Technologies Corp. 25,700 1,436,887 ------------ 4,129,096 ------------ BANKS (6.6%) North Fork Bancorporation, Inc. 35,650 975,384 South Financial Group, Inc. ss. 24,600 677,484 U.S. Bancorp 35,100 1,049,139 Wells Fargo & Co. 29,700 1,866,051 ------------ 4,568,058 ------------ BIOTECHNOLOGY (1.0%) Amgen, Inc.* 8,500 670,310 ------------ BUILDING PRODUCTS (0.7%) American Standard Companies, Inc. 12,600 503,370 ------------ CHEMICALS (1.7%) Dow Chemical Co. 11,200 490,784 Monsanto Co. 9,200 713,276 ------------ 1,204,060 ------------ COMMERCIAL SERVICES & SUPPLIES (0.8%) Avery Dennison Corp. ss. 10,400 574,808 ------------ COMMUNICATIONS EQUIPMENT (1.3%) Motorola, Inc. 39,800 899,082 ------------ COMPUTERS & PERIPHERALS (3.7%) Dell, Inc.* 20,700 620,793 EMC Corp.* 38,000 517,560 International Business Machines Corp. 17,200 1,413,840 ------------ 2,552,193 ------------ CONTAINERS & PACKAGING (1.2%) Crown Holdings, Inc.* 43,900 857,367 ------------ DIVERSIFIED FINANCIALS (7.8%) American Express Co. 14,000 720,440 Citigroup, Inc. 30,771 1,493,317 Goldman Sachs Group, Inc. 6,400 817,344 JPMorgan Chase & Co. 20,500 813,645 MBNA Corp. 57,700 1,566,555 ------------ 5,411,301 ------------ See Accompanying Notes to Financial Statements. 8 CREDIT SUISSE LARGE CAP BLEND FUND SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 2005 -------------------------------------------------------------------------------- NUMBER OF SHARES VALUE ------------ ------------ COMMON STOCKS DIVERSIFIED TELECOMMUNICATION SERVICES (3.1%) ALLTEL Corp. 14,300 $ 902,330 Sprint Nextel Corp. 53,800 1,256,768 ------------ 2,159,098 ------------ ELECTRIC UTILITIES (2.6%) Dominion Resources, Inc. 4,700 362,840 Exelon Corp. 13,200 701,448 TXU Corp. 15,100 757,869 ------------ 1,822,157 ------------ ELECTRONIC EQUIPMENT & INSTRUMENTS (1.1%) Broadcom Corp. Class A* 16,200 763,830 ------------ ENERGY EQUIPMENT & SERVICES (0.8%) Grant Prideco, Inc.* 12,700 560,324 ------------ FOOD & DRUG RETAILING (1.2%) CVS Corp. 31,300 826,946 ------------ FOOD PRODUCTS (2.6%) Campbell Soup Co. 25,800 768,066 Kellogg Co. 23,800 1,028,636 ------------ 1,796,702 ------------ HEALTHCARE EQUIPMENT & SUPPLIES (2.0%) Dade Behring Holdings, Inc. 9,700 396,633 St. Jude Medical, Inc.* 19,100 958,820 ------------ 1,355,453 ------------ HEALTHCARE PROVIDERS & SERVICES (2.7%) UnitedHealth Group, Inc. 20,800 1,292,512 WellPoint, Inc.* 7,300 582,467 ------------ 1,874,979 ------------ HOTELS, RESTAURANTS & LEISURE (1.6%) McDonald's Corp. 32,100 1,082,412 ------------ HOUSEHOLD DURABLES (0.7%) D.R. Horton, Inc. 13,600 485,928 ------------ HOUSEHOLD PRODUCTS (2.1%) Procter & Gamble Co. 25,300 1,464,364 ------------ INDUSTRIAL CONGLOMERATES (3.1%) General Electric Co. 40,700 1,426,535 Tyco International, Ltd. 25,500 735,930 ------------ 2,162,465 ------------ See Accompanying Notes to Financial Statements. 9 CREDIT SUISSE LARGE CAP BLEND FUND SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 2005 -------------------------------------------------------------------------------- NUMBER OF SHARES VALUE ------------ ------------ COMMON STOCKS INSURANCE (6.9%) American International Group, Inc. 29,000 $ 1,978,670 Genworth Financial, Inc. Class A 32,700 1,130,766 Hartford Financial Services Group, Inc. 10,400 893,256 St. Paul Travelers Companies, Inc. 18,200 812,994 ------------ 4,815,686 ------------ INTERNET SOFTWARE & SERVICES (1.5%) Google, Inc. Class A* 1,700 705,262 VeriSign, Inc.* 15,700 344,144 ------------ 1,049,406 ------------ IT CONSULTING & SERVICES (1.4%) CACI International, Inc. Class A* 9,000 516,420 NAVTEQ Corp.* 10,700 469,409 ------------ 985,829 ------------ MACHINERY (1.7%) Deere & Co. 17,000 1,157,870 ------------ MEDIA (2.2%) E.W. Scripps Co. Class A 14,400 691,488 Time Warner, Inc. 48,000 837,120 ------------ 1,528,608 ------------ MULTILINE RETAIL (2.4%) J.C. Penney Company, Inc. 14,300 795,080 Kohl's Corp.* 17,600 855,360 ------------ 1,650,440 ------------ OIL & GAS (9.7%) Apache Corp. 17,000 1,164,840 Burlington Resources, Inc. 5,200 448,240 Chevron Corp. 23,500 1,334,095 ConocoPhillips 19,500 1,134,510 Exxon Mobil Corp. 23,100 1,297,527 Newfield Exploration Co.* 7,200 360,504 Noble Energy, Inc. 16,500 664,950 XTO Energy, Inc. 8,000 351,520 ------------ 6,756,186 ------------ PHARMACEUTICALS (8.1%) Barr Pharmaceuticals, Inc.* 15,200 946,808 Johnson & Johnson 18,700 1,123,870 Medco Health Solutions, Inc.* 14,900 831,420 Pfizer, Inc. 34,000 792,880 Sepracor, Inc.* ss. 14,600 753,360 Wyeth 25,500 1,174,785 ------------ 5,623,123 ------------ See Accompanying Notes to Financial Statements. 10 CREDIT SUISSE LARGE CAP BLEND FUND SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 2005 -------------------------------------------------------------------------------- NUMBER OF SHARES VALUE ------------ ------------ COMMON STOCKS SEMICONDUCTOR EQUIPMENT & PRODUCTS (2.3%) Intel Corp. 46,300 $ 1,155,648 Maxim Integrated Products, Inc. 12,200 442,128 ------------ 1,597,776 ------------ SOFTWARE (4.4%) Activision, Inc.* 27,533 378,303 Electronic Arts, Inc.* 12,200 638,182 Microsoft Corp. 78,700 2,058,005 ------------ 3,074,490 ------------ SPECIALTY RETAIL (2.0%) Best Buy Company, Inc. 14,300 621,764 Ross Stores, Inc. ss. 27,000 780,300 ------------ 1,402,064 ------------ TOBACCO (2.3%) Altria Group, Inc. 21,700 1,621,424 ------------ TOTAL COMMON STOCKS (COST $61,520,714) 68,987,205 ------------ SHORT-TERM INVESTMENTS (3.6%) State Street Navigator Prime Fund ss.ss. 1,998,868 1,998,868 PAR (000) ------------ State Street Bank and Trust Co. Euro Time Deposit, 3.350%, 1/03/06 $ 521 521,000 ------------ TOTAL SHORT-TERM INVESTMENTS (COST $2,519,868) 2,519,868 ------------ TOTAL INVESTMENTS AT VALUE (102.9%) (COST $64,040,582) 71,507,073 LIABILITIES IN EXCESS OF OTHER ASSETS (-2.9%) (2,046,587) ------------ NET ASSETS (100.0%) $ 69,460,486 ============ -------------------------------------------------------------------------------- * Non-income producing security. ss. Security or portion thereof is out on loan. ss.ss. Represents security purchased with cash collateral received for securities on loan. See Accompanying Notes to Financial Statements. 11 CREDIT SUISSE LARGE CAP BLEND FUND STATEMENT OF ASSETS AND LIABILITIES December 31, 2005 -------------------------------------------------------------------------------- ASSETS Investments at value, including collateral for securities on loan of $1,998,868 (Cost $64,040,582) (Note 2) $ 71,507,073 1 Cash 633 Dividend and interest receivable 80,975 Receivable for fund shares sold 300 Prepaid expenses and other assets 30,063 ------------ Total Assets 71,619,044 ------------ LIABILITIES Advisory fee payable (Note 3) 27,355 Administrative services fee payable (Note 3) 11,639 Distribution fee payable (Note 3) 21,191 Payable upon return of securities loaned (Note 2) 1,998,868 Payable for fund shares redeemed 28,040 Other accrued expenses payable 71,465 ------------ Total Liabilities 2,158,558 ------------ NET ASSETS Capital stock, $0.001 par value (Note 6) 5,688 Paid-in capital (Note 6) 64,183,601 Accumulated net realized loss on investments (2,195,294) Net unrealized appreciation from investments 7,466,491 ------------ Net Assets $ 69,460,486 ============ COMMON SHARES Net assets $ 2,809,395 Shares outstanding 229,704 ------------ Net asset value, offering price, and redemption price per share $ 12.23 ============ A SHARES Net assets $ 57,199,713 Shares outstanding 4,664,953 ------------ Net asset value and redemption price per share $ 12.26 ============ Maximum offering price per share (net asset value/(1-5.75%)) $ 13.01 ============ B SHARES Net assets $ 8,342,035 Shares outstanding 699,792 ------------ Net asset value and offering price per share $ 11.92 ============ C SHARES Net assets $ 1,109,343 Shares outstanding 93,312 ------------ Net asset value and offering price per share $ 11.89 ============
-------------------------------------------------------------------------------- 1 Including $1,953,080 of securities on loan. See Accompanying Notes to Financial Statements. 12 CREDIT SUISSE LARGE CAP BLEND FUND STATEMENT OF OPERATIONS For the Year Ended December 31, 2005 -------------------------------------------------------------------------------- INVESTMENT INCOME (NOTE 2) Dividends $ 1,173,135 Interest 24,165 Securities lending 1,198 ------------ Total investment income 1,198,498 ------------ EXPENSES Investment advisory fees (Note 3) 555,498 Administrative services fees (Note 3) 97,365 Distribution fees (Note 3) Common Class 7,727 Class A 147,908 Class B 103,819 Class C 14,306 Transfer agent fees (Note 3) 138,303 Registration fees 46,595 Printing fees (Note 3) 40,692 Audit and tax fees 21,460 Custodian fees 19,252 Directors' fees 16,899 Legal fees 14,970 Insurance expense 6,395 Commitment fees (Note 4) 1,870 Miscellaneous expense 12,875 ------------ Total expenses 1,245,934 Less: fees waived (Note 3) (194,477) ------------ Net expenses 1,051,457 ------------ Net investment income 147,041 ------------ NET REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS Net realized gain from investments 6,624,939 Net change in unrealized appreciation (depreciation) from investments (5,106,356) ------------ Net realized and unrealized gain from investments 1,518,583 ------------ Net increase in net assets resulting from operations $ 1,665,624 ============
-------------------------------------------------------------------------------- See Accompanying Notes to Financial Statements. 13 CREDIT SUISSE LARGE CAP BLEND FUND STATEMENTS OF CHANGES IN NET ASSETS --------------------------------------------------------------------------------
FOR THE PERIOD FOR THE YEAR SEPTEMBER FOR THE YEAR ENDED 1, 2004 TO ENDED DECEMBER 31, DECEMBER 31, AUGUST 31, 2005 2004 1 2004 ------------ ------------ ------------ FROM OPERATIONS Net investment income $ 147,041 $ 332,103 $ 80,646 Net realized gain from investments 6,624,939 1,756,240 14,143,446 Net change in unrealized appreciation (depreciation) from investments (5,106,356) 6,219,001 (16,515,698) ------------ ------------ ------------ Net increase (decrease) in net assets resulting from operations 1,665,624 8,307,344 (2,291,606) ------------ ------------ ------------ FROM DIVIDENDS Dividends from net investment income Common Class shares (16,332) (4,071) (4,482) Class A shares (310,397) (73,821) (1,625) Class B shares (4,698) -- -- Class C shares (623) -- -- Distributions from net realized gains Common Class shares (110,598) (214,769) -- Class A shares (2,237,090) (3,950,170) -- Class B shares (333,667) (885,822) -- Class C shares (46,449) (120,536) -- ------------ ------------ ------------ Net decrease in net assets resulting from dividends and distributions (3,059,854) (5,249,189) (6,107) ------------ ------------ ------------ FROM CAPITAL SHARE TRANSACTIONS (Note 6) Proceeds from sale of shares 2,342,378 1,038,674 3,060,914 Exchange value of shares due to merger -- -- 88,620,976 Reinvestment of dividends and distributions 2,668,195 4,593,125 5,774 Net asset value of shares redeemed (16,365,188) (8,854,717) (15,996,481) ------------ ------------ ------------ Net increase (decrease) in net assets from capital share transactions (11,354,615) (3,222,918) 75,691,183 ------------ ------------ ------------ Net increase (decrease) in net assets (12,748,845) (164,763) 73,393,470 NET ASSETS Beginning of period 82,209,331 82,374,094 8,980,624 ------------ ------------ ------------ End of period $ 69,460,486 $ 82,209,331 $ 82,374,094 ============ ============ ============ Undistributed net investment income $ -- $ 332,017 $ 77,863 ============ ============ ============
-------------------------------------------------------------------------------- 1 The Fund changed its fiscal year end from August 31 to December 31. See Accompanying Notes to Financial Statements. 14 CREDIT SUISSE LARGE CAP BLEND FUND FINANCIAL HIGHLIGHTS (For a Common Class Share of the Fund Outstanding Throughout Each Period) --------------------------------------------------------------------------------
FOR THE PERIOD SEPTEMBER FOR THE YEAR 1, 2004 ENDED TO FOR THE YEAR ENDED AUGUST 31, DECEMBER DECEMBER ----------------------------------------------------------- 31, 2005 31, 2004 1 2004 2003 2002 2001 ----------- -------------- ----------- ----------- ----------- ----------- PER SHARE DATA Net asset value, beginning of period $ 12.45 $ 12.01 $ 11.42 $ 10.66 $ 13.39 $ 19.13 ----------- ----------- ----------- ----------- ----------- ----------- INVESTMENT OPERATIONS Net investment income 0.04 2 0.05 2 0.03 2 0.01 0.01 2 0.02 Net gain (loss) on investments (both realized and unrealized) 0.30 1.21 0.57 0.76 (2.71) (4.48) ----------- ----------- ----------- ----------- ----------- ----------- Total from investment operations 0.34 1.26 0.60 0.77 (2.70) (4.46) ----------- ----------- ----------- ----------- ----------- ----------- LESS DIVIDENDS AND DISTRIBUTIONS Dividends from net investment income (0.07) (0.01) (0.01) (0.01) (0.01) (0.03) Distributions from net realized gains (0.49) (0.81) -- -- (0.02) (1.25) ----------- ----------- ----------- ----------- ----------- ----------- Total dividends and distributions (0.56) (0.82) (0.01) (0.01) (0.03) (1.28) ----------- ----------- ----------- ----------- ----------- ----------- NET ASSET VALUE, END OF PERIOD $ 12.23 $ 12.45 $ 12.01 $ 11.42 $ 10.66 $ 13.39 =========== =========== =========== =========== =========== =========== Total return 3 2.70% 10.70% 5.25% 7.26% (20.21)% (24.68)% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (000s omitted) $ 2,809 $ 3,471 $ 4,383 $ 5,653 $ 4,545 $ 7,696 Ratio of expenses to average net assets 1.30% 1.30% 4 1.30% 1.25% 1.19% 1.22% Ratio of net investment income to average net assets 0.32% 1.37% 4 0.23% 0.17% 0.12% 0.09% Decrease reflected in above operating expense ratios due to waivers/reimbursements 0.26% 0.32% 4 0.40% 2.87% 2.24% 1.98% Portfolio turnover rate 101% 34% 168% 155% 122% 141%
-------------------------------------------------------------------------------- 1 The Fund changed its fiscal year end from August 31 to December 31. 2 Per share information is calculated using the average shares outstanding method. 3 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. 4 Annualized. See Accompanying Notes to Financial Statements. 15 CREDIT SUISSE LARGE CAP BLEND FUND FINANCIAL HIGHLIGHTS (For a Class A Share of the Fund Outstanding Throughout Each Period) --------------------------------------------------------------------------------
FOR THE PERIOD SEPTEMBER FOR THE YEAR 1, 2004 ENDED TO FOR THE YEAR ENDED AUGUST 31, DECEMBER DECEMBER ----------------------------------------------------------- 31, 2005 31, 2004 1 2004 2003 2002 2001 2 ----------- -------------- ----------- ----------- ----------- ----------- PER SHARE DATA Net asset value, beginning of period $ 12.48 $ 12.04 $ 11.44 $ 10.67 $ 13.39 $ 14.19 ----------- ----------- ----------- ----------- ----------- ----------- INVESTMENT OPERATIONS Net investment income 0.04 3 0.06 3 0.04 3 0.01 0.01 3 0.01 Net gain (loss) on investments (both realized and unrealized) 0.30 1.20 0.57 0.77 (2.70) (0.81) ----------- ----------- ----------- ----------- ----------- ----------- Total from investment operations 0.34 1.26 0.61 0.78 (2.69) (0.80) ----------- ----------- ----------- ----------- ----------- ----------- LESS DIVIDENDS AND DISTRIBUTIONS Dividends from net investment income (0.07) (0.01) (0.01) (0.01) (0.01) -- Distributions from net realized gains (0.49) (0.81) -- -- (0.02) -- ----------- ----------- ----------- ----------- ----------- ----------- Total dividends and distributions (0.56) (0.82) (0.01) (0.01) (0.03) -- ----------- ----------- ----------- ----------- ----------- ----------- NET ASSET VALUE, END OF PERIOD $ 12.26 $ 12.48 $ 12.04 $ 11.44 $ 10.67 $ 13.39 =========== =========== =========== =========== =========== =========== Total return 4 2.69% 10.67% 5.33% 7.28% (20.13)% (5.64)% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (000s omitted) $ 57,200 $ 63,160 $ 61,089 $ 1,778 $ 566 $ 64 Ratio of expenses to average net assets 1.30% 1.30% 5 1.30% 1.25% 1.19% 1.19% 5 Ratio of net investment income to average net assets 0.32% 1.37% 5 0.32% 0.22% 0.09% 0.77% 5 Decrease reflected in above operating expense ratios due to waivers/reimbursements 0.26% 0.32% 5 0.39% 2.90% 2.30% 6.44% 5 Portfolio turnover rate 101% 34% 168% 155% 122% 141%
-------------------------------------------------------------------------------- 1 The Fund changed its fiscal year end from August 31 to December 31. 2 For the period July 31, 2001 (inception date) through August 31, 2001. 3 Per share information is calculated using the average shares outstanding method. 4 Total returns are historical and assume changes in share price, reinvestment of all dividends and distributions and no sales charge. 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. 5 Annualized See Accompanying Notes to Financial Statements. 16 CREDIT SUISSE LARGE CAP BLEND FUND FINANCIAL HIGHLIGHTS (For a Class B Share of the Fund Outstanding Throughout Each Period) --------------------------------------------------------------------------------
FOR THE PERIOD SEPTEMBER FOR THE YEAR 1, 2004 ENDED TO FOR THE YEAR ENDED AUGUST 31, DECEMBER DECEMBER ----------------------------------------------------------- 31, 2005 31, 2004 1 2004 2003 2002 2001 2 ----------- -------------- ----------- ----------- ----------- ----------- PER SHARE DATA Net asset value, beginning of period $ 12.18 $ 11.78 $ 11.27 $ 10.59 $ 13.38 $ 14.19 ----------- ----------- ----------- ----------- ----------- ----------- INVESTMENT OPERATIONS Net investment income (loss) (0.05) 3 0.02 3 (0.05) 3 (0.06) 3 (0.06) 3 0.00 4 Net gain (loss) on investments (both realized and unrealized) 0.29 1.19 0.56 0.74 (2.71) (0.81) ----------- ----------- ----------- ----------- ----------- ----------- Total from investment operations 0.24 1.21 0.51 0.68 (2.77) (0.81) ----------- ----------- ----------- ----------- ----------- ----------- LESS DIVIDENDS AND DISTRIBUTIONS Dividends from net investment income (0.01) -- -- -- -- -- Distributions from net realized gains (0.49) (0.81) -- -- (0.02) -- ----------- ----------- ----------- ----------- ----------- ----------- Total dividends and distributions (0.50) (0.81) -- -- (0.02) -- ----------- ----------- ----------- ----------- ----------- ----------- NET ASSET VALUE, END OF PERIOD $ 11.92 $ 12.18 $ 11.78 $ 11.27 $ 10.59 $ 13.38 =========== =========== =========== =========== =========== =========== Total return 5 1.91% 10.44% 4.53% 6.42% (20.75)% (5.71)% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (000s omitted) $ 8,342 $ 13,714 $ 14,745 $ 1,109 $ 518 $ 1 Ratio of expenses to average net assets 2.05% 2.05% 6 2.05% 2.00% 1.94% 1.94% 6 Ratio of net investment income (loss) to average net assets (0.44)% 0.62% 6 (0.45)% (0.55)% (0.67)% (0.31)% 6 Decrease reflected in above operating expense ratios due to waivers/reimbursements 0.26% 0.32% 6 0.39% 2.90% 2.25% 6.47% 6 Portfolio turnover rate 101% 34% 168% 155% 122% 141%
-------------------------------------------------------------------------------- 1 The Fund changed its fiscal year end from August 31 to December 31. 2 For the period July 31, 2001 (inception date) through August 31, 2001. 3 Per share information is calculated using the average shares outstanding method. 4 This amount represents less than $0.01 per share. 5 Total returns are historical and assume changes in share price, reinvestment of all dividends and distributions and no sales charge. 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. 6 Annualized. See Accompanying Notes to Financial Statements. 17 CREDIT SUISSE LARGE CAP BLEND FUND FINANCIAL HIGHLIGHTS (For a Class C Share of the Fund Outstanding Throughout Each Period) --------------------------------------------------------------------------------
FOR THE PERIOD SEPTEMBER FOR THE YEAR 1, 2004 ENDED TO FOR THE YEAR ENDED AUGUST 31, DECEMBER DECEMBER ----------------------------------------------------------- 31, 2005 31, 2004 1 2004 2003 2002 2001 2 ----------- -------------- ----------- ----------- ----------- ----------- PER SHARE DATA Net asset value, beginning of period $ 12.15 $ 11.75 $ 11.24 $ 10.56 $ 13.39 $ 14.19 ----------- ----------- ----------- ----------- ----------- ----------- INVESTMENT OPERATIONS Net investment income (loss) (0.05) 3 0.03 3 (0.06) 3 (0.06) 3 (0.06) 3 0.00 4 Net gain (loss) on investments (both realized and unrealized) 0.29 1.18 0.57 0.74 (2.75) (0.80) ----------- ----------- ----------- ----------- ----------- ----------- Total from investment operations 0.24 1.21 0.51 0.68 (2.81) (0.80) ----------- ----------- ----------- ----------- ----------- ----------- LESS DIVIDENDS AND DISTRIBUTIONS Dividends from net investment income (0.01) -- -- -- -- -- Distributions from net realized gains (0.49) (0.81) -- -- (0.02) -- ----------- ----------- ----------- ----------- ----------- ----------- Total dividends and distributions (0.50) (0.81) -- -- (0.02) -- ----------- ----------- ----------- ----------- ----------- ----------- NET ASSET VALUE, END OF PERIOD $ 11.89 $ 12.15 $ 11.75 $ 11.24 $ 10.56 $ 13.39 =========== =========== =========== =========== =========== =========== Total return 5 1.91% 10.47% 4.54% 6.44% (21.03)% (5.64)% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (000s omitted) $ 1,109 $ 1,864 $ 2,156 $ 441 $ 271 $ 102 Ratio of expenses to average net assets 2.05% 2.05% 6 2.05% 2.00% 1.94% 1.94% 6 Ratio of net investment income (loss) to average net assets (0.44)% 0.62% 6 (0.47)% (0.55)% (0.65)% (0.25)% 6 Decrease reflected in above operating expense ratios due to waivers/reimbursements 0.26% 0.32% 6 0.39% 2.90% 2.25% 6.43% 6 Portfolio turnover rate 101% 34% 168% 155% 122% 141%
-------------------------------------------------------------------------------- 1 The Fund changed its fiscal year end from August 31 to December 31. 2 For the period July 31, 2001 (inception date) through August 31, 2001. 3 Per share information is calculated using the average shares outstanding method. 4 This amount represents less than $0.01 per share. 5 Total returns are historical and assume changes in share price, reinvestment of all dividends and distributions and no sales charge. 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. 6 Annualized. See Accompanying Notes to Financial Statements. 18 CREDIT SUISSE LARGE CAP BLEND FUND NOTES TO FINANCIAL STATEMENTS December 31, 2005 -------------------------------------------------------------------------------- NOTE 1. ORGANIZATION Credit Suisse Large Cap Blend Fund, Inc. (the "Fund") is registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as a diversified, open-end management investment company. The Fund's investment objective is long-term capital appreciation. The Fund was incorporated under the laws of the State of Maryland on July 31, 1998. The name of the Fund was changed from Credit Suisse Select Equity Fund, Inc. effective August 8, 2005. The Fund is authorized to offer six classes of shares: Common Class shares, Advisor Class shares, Institutional Class shares, Class A shares, Class B shares and Class C shares. Each class of shares represents an equal pro rata interest in the Fund, except that they bear different expenses which reflect the differences in the range of services provided to them. The Fund currently offers Common Class shares, Class A shares, Class B shares and Class C shares. The Fund's Common Class shares are closed to new investors, other than (1) investors in employee retirement, stock, bonus, pension or profit-sharing plans, (2) investment advisory clients of Credit Suisse Asset Management, LLC ("Credit Suisse"), (3) certain registered investment advisers ("RIA"), (4) certain broker-dealers and RIAs with clients participating in comprehensive fee programs and (5) employees of Credit Suisse or its affiliates and current and former Directors or Trustees of funds advised by Credit Suisse or its affiliates, and (6) a corporation, partnership, association, joint-stock company, trust, fund or any organized group of persons whether incorporated or not that has a formal or informal consulting or advisory relationship with Credit Suisse or a third party through which the investment is made. Any Common Class shareholder as of the close of business on December 12, 2001 can continue to buy Common Class shares of the Fund and open new accounts under the same social security number. Effective October 24, 2002, Institutional Class shares ceased operations. Class A shares are sold subject to a front-end sales charge of up to 5.75%. Class B shares are sold subject to a contingent deferred sales charge which declines from 4.00% to zero depending on the period of time the shares are held. Class C shares are sold subject to a contingent deferred sales charge of 1.00% if redeemed within the first year of purchase. Effective as of the close of business on January 9, 2004, the Fund acquired all of the net assets of the Credit Suisse Tax Efficient Fund ("Tax Efficient") in a tax-free exchange of shares. The Fund was also the accounting survivor in the tax-free exchange. The shares exchanged were 58,722 Class A shares (valued at $731,097) of the Fund for 47,899 Common Class shares of Tax Efficient, 5,280,784 19 CREDIT SUISSE LARGE CAP BLEND FUND NOTES TO FINANCIAL STATEMENTS (CONTINUED) December 31, 2005 -------------------------------------------------------------------------------- NOTE 1. ORGANIZATION Class A shares (valued at $65,745,895) of the Fund for 4,294,302 Class A shares of Tax Efficient, 1,563,233 Class B shares (valued at $19,133,980) of the Fund for 1,320,686 Class B shares of Tax Efficient, and 246,518 Class C shares (valued at $3,010,004) of the Fund for 207,812 Class C shares of Tax Efficient. Tax Efficient's net assets of $88,620,976 at that date, which included $21,904,658 of unrealized appreciation, were combined with those of the Fund. The aggregate net assets of Tax Efficient and the Fund immediately before the acquisition were $88,620,976 and $9,412,634, respectively, and the combined net assets of the Fund after the acquisition were $98,033,610. NOTE 2. SIGNIFICANT ACCOUNTING POLICIES A) SECURITY VALUATION -- The net asset value of the 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. The 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. 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 using this method would not represent fair value. Investments in mutual funds are valued at the mutual fund's closing net asset value per share on the day of valuation. Securities and other assets for which market quotations are not readily available, or whose values have been materially affected by events occurring before the Fund's Valuation Time but after the close of the securities' primary markets, are valued at fair value as determined in good faith by, or under the direction of, the Board of Directors under procedures established by the Board of Directors. The Fund may utilize a service provided by an independent third party which has been approved by the Board of Directors to fair value certain Fund securities. When fair-value pricing is employed, the prices of securities used by a fund to calculate its net asset value may differ from quoted or published prices for the same securities. 20 CREDIT SUISSE LARGE CAP BLEND FUND NOTES TO FINANCIAL STATEMENTS (CONTINUED) December 31, 2005 -------------------------------------------------------------------------------- NOTE 2. SIGNIFICANT ACCOUNTING POLICIES B) 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. Certain expenses are class-specific expenses and vary by class. Income, expenses (excluding class-specific expenses) and realized/unrealized gains/losses are allocated proportionately to each class of shares based upon the relative net asset value of the outstanding shares of that class. The cost of investments sold is determined by use of the specific identification method for both financial reporting and income tax purposes. C) DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- Dividends from net investment income and distributions of net realized capital gains, if any, are declared and paid at least annually. However, to the extent that a net realized capital gain can be reduced by a capital loss 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"). D) FEDERAL INCOME TAXES -- No provision is made for federal taxes as it is the 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 to make the requisite distributions to its shareholders, which will be sufficient to relieve it from federal income and excise taxes. E) 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 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. F) SHORT-TERM INVESTMENTS -- The Fund, together with other funds/portfolios advised by Credit Suisse, an indirect, wholly-owned subsidiary of Credit Suisse Group, pools available cash into either a short-term variable rate time deposit issued by State Street Bank and Trust Company ("SSB"), the Fund's custodian, or a money market fund advised by Credit Suisse. The short-term time deposit issued by SSB is a variable rate account classified as a short-term investment. 21 CREDIT SUISSE LARGE CAP BLEND FUND NOTES TO FINANCIAL STATEMENTS (CONTINUED) December 31, 2005 -------------------------------------------------------------------------------- NOTE 2. SIGNIFICANT ACCOUNTING POLICIES G) 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 the Fund in connection with securities lending activity may be pooled together with cash collateral for other funds/portfolios advised by Credit Suisse and may be invested in a variety of investments, including certain Credit Suisse-advised funds, funds advised by SSB, the Fund's 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. SSB has been engaged by the Fund to act as the Fund's securities lending agent. The Fund's securities lending arrangement provides that the Fund and SSB will share the net income earned from securities lending activities. During the year ended December 31, 2005, total earnings from the Fund's investment in cash collateral received in connection with security lending arrangements was $54,326, of which $52,621 was rebated to borrowers (brokers). The Fund retained $1,198 in income from the cash collateral investment, and SSB, as lending agent, was paid $507. The Fund may also be entitled to certain minimum amounts of income from its securities lending activities. Securities lending income is accrued as earned. NOTE 3. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES Credit Suisse serves as investment adviser for the Fund. For its investment advisory services, Credit Suisse is entitled to receive a fee from the Fund at an annual rate of 0.75% of the Fund's average daily net assets. For the year ended December 31, 2005, investment advisory fees earned and voluntarily waived for the Fund were $555,498 and $194,477, respectively. Credit Suisse will not recapture from the Fund any fees it waived during the fiscal year ended December 31, 2005. Fee waivers and reimbursements are voluntary and may be discontinued by Credit Suisse at any time. Credit Suisse Asset Management Securities, Inc. ("CSAMSI"), an affiliate of Credit Suisse, and SSB serve as co-administrators to the Fund. For its co-administrative services, CSAMSI currently receives a fee calculated at an annual rate of 0.05% of the Fund's average daily net assets. For the year 22 CREDIT SUISSE LARGE CAP BLEND FUND NOTES TO FINANCIAL STATEMENTS (CONTINUED) December 31, 2005 -------------------------------------------------------------------------------- NOTE 3. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES ended December 31, 2005, co-administrative services fees earned by CSAMSI were $37,033. For its co-administrative services, SSB receives a fee, exclusive of out-of-pocket expenses, 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. For the year ended December 31, 2005, co-administrative services fees earned by SSB (including out-of-pocket expenses) were $60,332. In addition to serving as the Fund's co-administrator, CSAMSI currently serves as distributor of the Fund's shares. Pursuant to distribution plans adopted by the Fund pursuant to Rule 12b-1 under the 1940 Act, CSAMSI receives fees for its distribution services. For the Common Class and Class A shares of the Fund, the fee is calculated at an annual rate of 0.25% of the average daily net assets. For Class B and Class C shares of the Fund, the fee is calculated at an annual rate of 1.00% of average daily net assets. Certain brokers, dealers and financial representatives provide transfer agent related services to the Fund, and receive compensation from Credit Suisse. Credit Suisse is then reimbursed by the Fund. For the year ended December 31, 2005, the Fund reimbursed Credit Suisse $1,235, which is included in the Fund's transfer agent expense. For the year ended December 31, 2005, CSAMSI and its affiliates advised the Fund that they retained $833 from commissions earned on the sale of the Fund's Class A shares. Merrill Corporation ("Merrill"), an affiliate of Credit Suisse, has been engaged by the Fund to provide certain financial printing and fulfillment services. For the year ended December 31, 2005, Merrill was paid $14,023 for its services to the Fund. NOTE 4. LINE OF CREDIT The Fund, together with other funds/portfolios advised by Credit Suisse (collectively, the "Participating Funds"), participates in a $75 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 23 CREDIT SUISSE LARGE CAP BLEND FUND NOTES TO FINANCIAL STATEMENTS (CONTINUED) December 31, 2005 -------------------------------------------------------------------------------- NOTE 4. LINE OF CREDIT 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 Federal Funds rate plus 0.50%. At December 31, 2005, and during the year ended December 31, 2005, the Fund had no borrowings under the Credit Facility. NOTE 5. PURCHASES AND SALES OF SECURITIES For the year ended December 31, 2005, purchases and sales of investment securities (excluding short-term investments) were $73,959,639 and $88,347,035, respectively. NOTE 6. CAPITAL SHARE TRANSACTIONS The Fund is authorized to issue six billion full and fractional shares of capital stock, $.001 par value per share. Transactions in capital shares for each class were as follows:
COMMON CLASS -------------------------------------------------------------------------------------------- FOR THE PERIOD FOR THE YEAR ENDED SEPTEMBER 1, 2004 TO FOR THE YEAR ENDED DECEMBER 31, 2005 DECEMBER 31, 2004 1 AUGUST 31, 2004 ---------------------------- ---------------------------- ---------------------------- SHARES VALUE SHARES VALUE SHARES VALUE ------------ ------------ ------------ ------------ ------------ ------------ Shares sold 2,894 $ 35,694 1,230 $ 15,506 28,860 $ 339,653 Shares issued in reinvestment of dividends and distributions 10,165 125,707 17,807 217,154 358 4,437 Shares redeemed (62,116) (767,303) (105,147) (1,287,413) (159,529) (1,923,821) ------------ ------------ ------------ ------------ ------------ ------------ Net decrease (49,057) $ (605,902) (86,110) $ (1,054,753) (130,311) $ (1,579,731) ============ ============ ============ ============ ============ ============
CLASS A -------------------------------------------------------------------------------------------- FOR THE PERIOD FOR THE YEAR ENDED SEPTEMBER 1, 2004 TO FOR THE YEAR ENDED DECEMBER 31, 2005 DECEMBER 31, 2004 1 AUGUST 31, 2004 ---------------------------- ---------------------------- ---------------------------- SHARES VALUE SHARES VALUE SHARES VALUE ------------ ------------ ------------ ------------ ------------ ------------ Shares sold 176,736 $ 2,196,744 75,840 $ 966,295 155,404 $ 1,901,131 Shares exchanged due to merger -- -- -- -- 5,339,506 66,476,992 Shares issued in reinvestment of dividends and distributions 177,984 2,206,481 286,271 3,499,528 108 1,337 Shares redeemed (748,706) (9,275,324) (375,995) (4,701,043) (577,634) (7,092,219) ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) (393,986) $ (4,872,099) (13,884) $ (235,220) 4,917,384 $ 61,287,241 ============ ============ ============ ============ ============ ============
24 CREDIT SUISSE LARGE CAP BLEND FUND NOTES TO FINANCIAL STATEMENTS (CONTINUED) December 31, 2005 -------------------------------------------------------------------------------- NOTE 6. CAPITAL SHARE TRANSACTIONS
CLASS B -------------------------------------------------------------------------------------------- FOR THE PERIOD FOR THE YEAR ENDED SEPTEMBER 1, 2004 TO FOR THE YEAR ENDED DECEMBER 31, 2005 DECEMBER 31, 2004 1 AUGUST 31, 2004 ---------------------------- ---------------------------- ---------------------------- SHARES VALUE SHARES VALUE SHARES VALUE ------------ ------------ ------------ ------------ ------------ ------------ Shares sold 5,090 $ 61,068 2,407 $ 28,945 20,107 $ 240,576 Shares exchanged due to merger -- -- -- -- 1,563,233 19,133,980 Shares issued in reinvestment of dividends and distributions 25,333 305,295 66,383 790,622 -- -- Shares redeemed (456,555) (5,522,816) (194,227) (2,373,273) (430,337) (5,170,229) ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) (426,132) $ (5,156,453) (125,437) $ (1,553,706) 1,153,003 $ 14,204,327 ============ ============ ============ ============ ============ ============
CLASS C -------------------------------------------------------------------------------------------- FOR THE PERIOD FOR THE YEAR ENDED SEPTEMBER 1, 2004 TO FOR THE YEAR ENDED DECEMBER 31, 2005 DECEMBER 31, 2004 1 AUGUST 31, 2004 ---------------------------- ---------------------------- ---------------------------- SHARES VALUE SHARES VALUE SHARES VALUE ------------ ------------ ------------ ------------ ------------ ------------ Shares sold 4,098 $ 48,872 2,351 $ 27,928 48,452 $ 579,554 Shares exchanged due to merger -- -- -- -- 246,518 3,010,004 Shares issued in reinvestment of dividends and distributions 2,555 30,712 7,224 85,821 -- -- Shares redeemed (66,794) (799,745) (39,558) (492,988) (150,796) (1,810,212) ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) (60,141) $ (720,161) (29,983) $ (379,239) 144,174 $ 1,779,346 ============ ============ ============ ============ ============ ============
-------------------------------------------------------------------------------- 1 The Fund changed its fiscal year from August 31 to December 31. On December 31, 2005, the number of shareholders that held 5% or more of the outstanding shares of each class of the Fund was as follows: NUMBER OF APPROXIMATE PERCENTAGE SHAREHOLDERS OF OUTSTANDING SHARES ------------ ---------------------- Common Class 2 36% Class C 3 48% Some of the shareholders are omnibus accounts, which hold shares on behalf of individual shareholders. 25 CREDIT SUISSE LARGE CAP BLEND FUND NOTES TO FINANCIAL STATEMENTS (CONTINUED) December 31, 2005 -------------------------------------------------------------------------------- NOTE 7. FEDERAL INCOME TAXES Income and capital gain distributions are determined in accordance with federal income tax regulations, which may differ from GAAP. The tax characteristics of dividends and distributions paid during the year ended December 31, 2005, the period ended December 31, 2004 and the year ended August 31, 2004 for the Fund were as follows:
ORDINARY INCOME LONG-TERM CAPITAL GAIN ------------------------------------------------------- ----------------------------------------------------- DECEMBER 31, 2005 DECEMBER 31, 2004 AUGUST 31, 2004 DECEMBER 31, 2005 DECEMBER 31, 2004 AUGUST 31, 2004 ----------------- ----------------- --------------- ----------------- ----------------- --------------- $667,882 $77,949 $6,107 $2,391,972 $5,171,240 $--
The tax basis of components of distributable earnings differ from the amounts reflected in the Statement of Assets and Liabilities by temporary book/tax differences. These differences are primarily due to differing treatments of losses deferred due to wash sales. At December 31, 2005, the components of distributable earnings on a tax basis for the Fund were as follows: Accumulated net realized loss $(2,155,492) Unrealized appreciation 7,426,689 ----------- $ 5,271,197 =========== At December 31, 2005, the Fund had capital loss carryforwards available to offset possible future capital gains as follows: EXPIRES DECEMBER 31, -------------------------- 2009 2010 ---------- -------- $1,349,994 $805,498 It is uncertain that the Fund will realize the full benefit of these losses prior to expiration due to section 382 limitations related to the Fund's merger with Credit Suisse Tax Efficient Fund. During the tax year ended December 2005, the Fund utilized $4,312,764 of the capital loss carryforward. At December 31, 2005, 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 from investments were $64,080,384, $8,892,746, ($1,466,057) and $7,426,689, respectively. 26 CREDIT SUISSE LARGE CAP BLEND FUND NOTES TO FINANCIAL STATEMENTS (CONTINUED) December 31, 2005 -------------------------------------------------------------------------------- NOTE 7. FEDERAL INCOME TAXES At December 31, 2005, the Fund reclassified $147,008 from undistributed net investment income and $82,029 from paid in capital to accumulated net realized loss from investments, to adjust for current year permanent book/tax differences which arose principally from differing book/tax treatments of dividend redesignations, distributions in excess, and capital loss carryforward acquired from the merger with Credit Suisse Tax Efficient Fund. Net assets were not affected by these reclassifications. NOTE 8. CONTINGENCIES In the normal course of business, the Fund may provide general indemnifications pursuant to certain contracts and organizational documents. The Fund's maximum exposure under these arrangements is dependent on future claims that may be made against the Fund and, therefore, cannot be estimated; however, based on experience, the risk of loss from such claims is considered remote. 27 CREDIT SUISSE LARGE CAP BLEND FUND REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM -------------------------------------------------------------------------------- To the Board of Directors and Shareholders of Credit Suisse Large Cap Blend Fund, Inc.: In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Credit Suisse Large Cap Blend Fund, Inc. (the "Fund") at December 31, 2005, the results of its operations for the year then ended, and the changes in its net assets and the financial highlights for each of the years (or periods) presented, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fund's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2005 by correspondence with the custodian, provide a reasonable basis for our opinion. PricewaterhouseCoopers LLP Baltimore, Maryland February 6, 2006 28 CREDIT SUISSE LARGE CAP BLEND FUND BOARD APPROVAL OF ADVISORY AGREEMENT (UNAUDITED) -------------------------------------------------------------------------------- In approving the Advisory Agreement, the Board of Directors, including the Independent Directors, considered the following factors with respect to the Large Cap Blend Fund (the "Fund"): INVESTMENT ADVISORY FEE RATES The Board reviewed and considered the contractual advisory fee rate of 0.75% for the Fund ("Contractual Advisory Fee"), which was reduced to 0.43% after voluntary fee waivers and/or expense reimbursements ("Net Advisory Fee"), in light of the extent and quality of the advisory services provided by Credit Suisse Asset Management, LLC ("Credit Suisse"). The Board acknowledged that fee waivers and expense reimbursements could be discontinued at any time. Additionally, the Board received and considered information comparing the Fund's Contractual Advisory Fee, Net Advisory Fee and the Fund's overall expenses with those of funds in both the relevant expense group ("Expense Group") and universe of funds (the "Expense Universe") provided by Lipper Inc., an independent provider of investment company data. NATURE, EXTENT AND QUALITY OF THE SERVICES UNDER THE ADVISORY AGREEMENT The Board received and considered information regarding the nature, extent and quality of services provided to the Fund by Credit Suisse under the Advisory Agreement. The Board also noted information received at regular meetings throughout the year related to the services rendered by Credit Suisse. The Board reviewed background information about Credit Suisse, including its Form ADV. The Board considered the background and experience of Credit Suisse's senior management and the expertise of, and the amount of attention given to the Fund by, senior personnel of Credit Suisse. In addition, the Board reviewed the qualifications, backgrounds and responsibilities of the portfolio management team primarily responsible for the day-to-day portfolio management of the Fund and the extent of the resources devoted to research and analysis of actual and potential investments. The Board also received and considered information about the nature, extent and quality of services and fee rates offered to other Credit Suisse clients for comparable services. FUND PERFORMANCE The Board received and considered the one-, two-, three-, four- and five-year performance of the Fund, along with comparisons, for all presented periods, both to the relevant performance group ("Performance Group") and universe of funds ("Performance Universe") for the Fund. The Board was provided with 29 CREDIT SUISSE LARGE CAP BLEND FUND BOARD APPROVAL OF ADVISORY AGREEMENT (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- a description of the methodology used to arrive at the data for the funds included in the Performance Group and the Performance Universe. The Board reviewed information comparing the performance of various Credit Suisse Funds to performance benchmarks that the Board had previously established and progress that had been made in certain instances toward achieving those benchmarks. The Board also reviewed comparisons between the Fund and its identified benchmark over various time periods. CREDIT SUISSE PROFITABILITY The Board received and considered a profitability analysis of Credit Suisse based on the fees payable under the Advisory Agreement for the Fund, including other relationships between the Fund on the one hand and Credit Suisse affiliates on the other. The Board received profitability information for the other funds in the Credit Suisse family of funds. ECONOMIES OF SCALE The Board considered whether economies of scale in the provision of services to the Fund were being passed along to the shareholders. Accordingly, the Board considered whether alternative fee structures (such as breakpoint fee structures) would be more appropriate or reasonable taking into consideration economies of scale or other efficiencies that might accrue from increases in the Fund's asset levels. OTHER BENEFITS TO CREDIT SUISSE The Board considered other benefits received by Credit Suisse and its affiliates as a result of their relationships with the Fund. Such benefits include, among others, research arrangements with brokers who execute transactions on behalf of the Fund, administrative and brokerage relationships with affiliates of Credit Suisse and benefits potentially derived from an increase in Credit Suisse's businesses as a result of its relationship with the Fund (such as the ability to market to shareholders other financial products offered by Credit Suisse and its affiliates). The Board considered the standards applied in seeking best execution, whether and to what extent soft dollar credits are sought and how any such credits are utilized, any benefits that may be achieved by using an affiliated broker and the existence of quality controls applicable to brokerage allocation procedures. The Board also reviewed Credit Suisse's method for allocating portfolio investment opportunities among its advisory clients. 30 CREDIT SUISSE LARGE CAP BLEND FUND BOARD APPROVAL OF ADVISORY AGREEMENT (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- CONCLUSIONS In selecting Credit Suisse, and approving the Advisory Agreement and the investment advisory fee under such agreement, the Board concluded that: o The Contractual Advisory Fee of 0.75% was slightly below the median of 0.768% for its Expense Group and its Net Advisory Fee of 0.43% was the lowest in its Expense Group. Thus, the fees were considered reasonable. o The Fund's performance for each period was in the fourth or fifth quintile for its Performance Group. Its performance for the one-year period was slightly below the median for its Performance Universe and otherwise in the fourth or fifth quintile for the Performance Universe. The Board noted that it had approved changes to the Fund's investment strategies and portfolio managers that became effective in August 2005, but that Credit Suisse had noted that the effect of these changes was not reflected in the Lipper performance data. The Board stated that it would continue to monitor steps undertaken by Credit Suisse to improve performance. o Aside from performance (as described above), the Board was satisfied with the nature and extent of the investment advisory services provided to the Fund by Credit Suisse and that, based on dialogue with management and counsel, the services provided by Credit Suisse under the Advisory Agreement is typical of, and consistent with, those provided to similar mutual funds by other investment advisers. The Board understood that Credit Suisse had or was in the process of addressing any performance issues. o In light of the costs of providing investment management and other services to the Fund and Credit Suisse's ongoing commitment to the Fund, the profits and other ancillary benefits that Credit Suisse and its affiliates received were considered reasonable. o Credit Suisse's profitability based on fees payable under the Advisory Agreement was reasonable in light of the nature, extent and quality of the services provided to the Fund thereunder. o In light of the relatively small size of the Fund and the amount of the Net Advisory Fees, the Fund's current fee structure (without breakpoints) was considered reasonable. No single factor reviewed by the Board was identified by the Board as the principal factor in determining whether to approve the Advisory Agreement. The Independent Directors were advised by separate independent legal counsel throughout the process. 31 CREDIT SUISSE LARGE CAP BLEND FUND INFORMATION CONCERNING DIRECTORS AND OFFICERS (UNAUDITED) --------------------------------------------------------------------------------
TERM OF OFFICE 1 NUMBER OF AND PORTFOLIOS IN OTHER POSITION(S) LENGTH PRINCIPAL FUND COMPLEX DIRECTORSHIPS NAME, ADDRESS AND HELD WITH OF TIME OCCUPATION(S) DURING OVERSEEN HELD BY DATE OF BIRTH FUND SERVED PAST FIVE YEARS BY DIRECTOR DIRECTOR -------------------------- ----------- ---------- ------------------------- ------------- ------------------------ INDEPENDENT DIRECTORS Enrique Arzac Director, Since Professor of Finance 47 Director of The c/o Credit Suisse Asset Nominating 2005 and Economics, Adams Express Management, LLC Committee Graduate School of Company Attn: General Counsel Member Business, Columbia (a closed-end 466 Lexington Avenue and Audit University since 1971 investment company); New York, New York Committee Director of Petroleum 10017-3140 Chairman and Resources Corporation (a closed- Date of Birth: 10/02/41 end investment company) Richard H. Francis Director, Since Currently retired 41 None c/o Credit Suisse Asset Nominating 1999 Management, LLC and Audit Attn: General Counsel Committee 466 Lexington Avenue Member New York, New York 10017-3140 Date of Birth: 04/23/32 Jeffrey E. Garten 2 Director, Since The Juan Trippe 40 Director of Box 208200 Nominating Fund Professor in the Aetna, Inc. New Haven, Connecticut and Audit Inception Practice of International (insurance company); 06520-8200 Committee Trade, Finance and Director of Member Business from July CarMax Group Date of Birth: 10/29/46 2005 to present; Partner (used car and Chairman of Garten dealers) Rothkopf (consulting firm) from October 2005 to present; Dean of Yale School of Management from November 1995 to June 2005 Peter F. Krogh Director, Since Dean Emeritus and 40 Director 301 ICC Nominating 2001 Distinguished Professor of Carlisle Georgetown University and Audit of International Affairs Companies Washington, DC 20057 Committee at the Edmund A. Incorporated Member Walsh School of (diversified Date of Birth: 02/11/37 Foreign Service, manufacturing Georgetown University company) from June 1995 to present
______________ 1 Each Director and Officer serves until his or her respective successor has been duly elected and qualified. 2 Mr. Garten was initially appointed as a Director of the Fund on February 6, 1998. He resigned as Director on February 3, 2000 and was subsequently reappointed on December 21, 2000. 32 CREDIT SUISSE LARGE CAP BLEND FUND INFORMATION CONCERNING DIRECTORS AND OFFICERS (UNAUDITED) (CONTINUED) --------------------------------------------------------------------------------
TERM OF OFFICE 1 NUMBER OF AND PORTFOLIOS IN OTHER NAME, ADDRESS AND POSITION(S) LENGTH PRINCIPAL FUND COMPLEX DIRECTORSHIPS DATE OF BIRTH HELD WITH OF TIME OCCUPATION(S) DURING OVERSEEN HELD BY FUND SERVED PAST FIVE YEARS BY DIRECTOR DIRECTOR -------------------------- ----------- ---------- ------------------------- ------------- ------------------------ INDEPENDENT DIRECTORS James S. Pasman, Jr. Director, Since Currently retired 42 Director of c/o Credit Suisse Asset Nominating 1999 Education Management, LLC and Audit Management Attn: General Counsel Committee Corp. 466 Lexington Avenue Member New York, New York 10017-3140 Date of Birth: 12/20/30 Steven N. Rappaport Chairman of Director Partner of Lehigh 46 Director of Lehigh Court, LLC the Board of since Court, LLC and RZ Presstek, Inc. 40 East 52nd Street Directors, 1999 Capital (private (digital imaging New York, New York Nominating and investment firms) technologies 10022 Committee Chairman from July 2002 to company); Director Chairman since present; Transition of Wood Resources, Date of Birth: 07/10/48 and Audit 2005 Adviser to SunGard LLC. (plywood Committee Securities Finance, manufacturing Member Inc. from February company) 2002 to July 2002; President of SunGard Securities Finance, Inc. from 2001 to February 2002; President of Loanet, Inc. (on-line accounting service) from 1997 to 2001 INTERESTED DIRECTORS Michael E. Kenneally 3,4 Director Since Chairman and Global 40 None c/o Credit Suisse Asset 2004 Chief Executive Officer Management, LLC of Credit Suisse from Attn: General Counsel March 2003 to July 466 Lexington Avenue 2005; Chairman and New York, New York Chief Investment Officer 10017-3140 of Banc of America Capital Management from Date of Birth: 03/30/54 1998 to March 2003
________________ 3 Mr. Kenneally is a Director who is an "interested person" of the Fund as defined in the 1940 Act, because he was an officer of Credit Suisse within the last two fiscal years. 4 Effective July 31, 2005, Steven B. Plump was appointed as Chief Executive Officer and President of the Fund. Mr. Kenneally, who previously held these positions, resigned effective July 31, 2005. 33 CREDIT SUISSE LARGE CAP BLEND FUND INFORMATION CONCERNING DIRECTORS AND OFFICERS (UNAUDITED) (CONTINUED) --------------------------------------------------------------------------------
TERM OF OFFICE 1 AND POSITION(S) LENGTH NAME, ADDRESS AND HELD WITH OF TIME DATE OF BIRTH FUND SERVED PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS -------------------------- ----------- ---------- -------------------------------------------------------------- OFFICERS Steven B. Plump 4 Chief Since Managing Director; Associated with Credit Suisse or its Credit Suisse Asset Executive 2005 predecessor since 1995; Officer of other Credit Suisse Funds Management, LLC Officer and 466 Lexington Avenue President New York, New York 10017-3140 Date of Birth: 02/08/59 Michael A. Pignataro Chief Since Director and Director of Fund Administration of Credit Suisse; Credit Suisse Asset Financial 1999 Associated with Credit Suisse or its predecessors since 1984; Management, LLC Officer and Officer of other Credit Suisse Funds 466 Lexington Avenue Treasurer New York, New York 10017-3140 Date of Birth: 11/15/59 Emidio Morizio Chief Since Director and Global Head of Compliance of Credit Suisse; Credit Suisse Asset Compliance 2004 Associated with Credit Suisse since July 2000; Vice President Management, LLC Officer and Director of Compliance of Forstmann-Leff 466 Lexington Avenue Associates from 1998 to June 2000; Officer of other New York, New York Credit Suisse Funds 10017-3140 Date of Birth: 09/21/66 Ajay Mehra Chief Since Director and Head of Legal Americas Traditional Asset Credit Suisse Asset Legal 2004 Management and Hedge Funds; Associated with Credit Suisse Management, LLC Officer since September 2004; Senior Associate of Shearman & Sterling 466 Lexington Avenue LLP from September 2000 to September 2004; Senior Counsel New York, New York of the SEC Division of Investment Management from June 10017-3140 1997 to September 2000; Officer of other Credit Suisse Funds Date of Birth: 08/14/70 J. Kevin Gao Vice Since Director and Legal Counsel of Credit Suisse; Associated with Credit Suisse Asset President 2004 Credit Suisse since July 2003; Associated with the law firm of Management, LLC and Willkie Farr & Gallagher LLP from 1998 to 2003; Officer of other 466 Lexington Avenue Secretary Credit Suisse Funds New York, New York 10017-3140 Date of Birth: 10/13/67 Robert Rizza Assistant Since Vice President of Credit Suisse; Associated with Credit Suisse Credit Suisse Asset Treasurer 2002 since 1998; Officer of other Credit Suisse Funds Management, LLC 466 Lexington Avenue New York, New York 10017-3140 Date of Birth: 12/09/65
______________ 4 Effective July 31, 2005, Steven B. Plump was appointed as Chief Executive Officer and President of the Fund. Mr. Kenneally, who previously held these positions, resigned effective July 31, 2005. The Statement of Additional Information includes additional information about the Directors and is available, without charge, upon request, by calling 800-927-2874. 34 CREDIT SUISSE LARGE CAP BLEND FUND TAX INFORMATION LETTER December 31, 2005 (unaudited) -------------------------------------------------------------------------------- IMPORTANT TAX INFORMATION FOR CORPORATE SHAREHOLDERS Corporate Shareholders should note for the year ended December 31, 2005, the percentage of the Fund's investment income (i.e., net investment income plus short-term capital gains) that qualified for the intercorporate dividends received deduction is 100.00%. For the fiscal year ended December 31, 2005 certain dividends paid by the Fund may be subject to a maximum tax rate of 15%, as provided for by the Jobs and Growth Tax Relief Reconciliation Act of 2003. Complete information will be reported in conjunction with your 2005 Form 1099-DIV. For the fiscal year ended December 31, 2005, the Fund designated approximately $332,050, or up to the maximum amount of such dividends allowable pursuant to the Internal Revenue Code, as qualified dividend income eligible for reduced tax rates. These lower rates range from 5% to 15% depending on an individual's tax bracket. Complete information will be reported in conjunction with Form 1099-DIV. IMPORTANT TAX INFORMATION FOR SHAREHOLDERS During the year ended December 31, 2005, the Fund declared $2,391,972 in dividends that were designated as 20% long-term capital gains dividends. 35 CREDIT SUISSE LARGE CAP BLEND FUND PROXY VOTING AND PORTFOLIO HOLDINGS INFORMATION -------------------------------------------------------------------------------- Information regarding how the Fund voted proxies related to its portfolio securities during the 12-month period ended June 30 of each year, as well as the policies and procedures that the Fund uses to determine how to vote proxies relating to its portfolio securities are available: o By calling 1-800-927-2874 o On the Portfolio's website, www.credit-suisse.com/us o On the website of the Securities and Exchange Commission, http://www.sec.gov. The Fund files a complete schedule of its portfolio holdings for the first and third quarters of its fiscal year with the SEC on Form N-Q. The Fund's Forms N-Q are available on the SEC's website at http://www.sec.gov and may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information on the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. 36 CREDIT SUISSE [LOGO] P.O. BOX 55030, BOSTON, MA 02205-5030 800-927-2874 o www.credit-suisse.com/us CREDIT SUISSE ASSET MANAGEMENT SECURITIES, INC., DISTRIBUTOR. LCB-AR-1205 ITEM 2. CODE OF ETHICS. The registrant has adopted a code of ethics applicable to its Chief Executive Officer, President, Chief Financial Officer and Chief Accounting Officer, or persons performing similar functions. A copy of the code is filed as Exhibit 12(a)(1) to this Form. There were no amendments to the code during the fiscal year ended December 31, 2005. There were no waivers or implicit waivers from the code granted by the registrant during the fiscal year ended December 31, 2005. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. The registrant's governing board has determined that it has three audit committee financial experts serving on its audit committee: Enrique R. Arzac, Richard H. Francis and Steven N. Rappaport. Each audit committee financial expert is "independent" for purposes of this item. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. (a) through (d). The information in the table below is provided for services rendered to the registrant by its independent registered public accounting firm, PricewaterhouseCoopers LLP ("PwC"), for its fiscal years ended December 31, 2004 and December 31, 2005.
---------------------------------------- -------------------------------------- -------------------------------------- 2004 2005 ---------------------------------------- -------------------------------------- -------------------------------------- Audit Fees $6,580 $15,630 ---------------------------------------- -------------------------------------- -------------------------------------- Audit-Related Fees(1) $1,500 $3,150 ---------------------------------------- -------------------------------------- -------------------------------------- Tax Fees(2) $1,327 $2,443 ---------------------------------------- -------------------------------------- -------------------------------------- All Other Fees -- -- ---------------------------------------- -------------------------------------- -------------------------------------- Total $9,407 $21,223 ---------------------------------------- -------------------------------------- --------------------------------------
(1) Services include agreed-upon procedures in connection with the registrant's third quarter 2004 Form N-Q filing ($1,500) and the registrant's semi-annual financial statements ($3,150) for 2005. (2) Tax services in connection with the registrant's excise tax calculations and review of the registrant's applicable tax returns. The information in the table below is provided with respect to non-audit services that directly relate to the registrant's operations and financial reporting and that were rendered by PwC to the registrant's investment adviser, Credit Suisse Asset Management, LLC ("Credit Suisse"), and any service provider to the registrant controlling, controlled by or under common control with Credit Suisse that provided ongoing services to the registrant ("Covered Services Provider"), for the registrant's fiscal years ended December 31, 2004 and December 31, 2005.
---------------------------------------- -------------------------------------- -------------------------------------- 2004 2005 ---------------------------------------- -------------------------------------- -------------------------------------- Audit-Related Fees N/A N/A ---------------------------------------- -------------------------------------- -------------------------------------- Tax Fees N/A N/A ---------------------------------------- -------------------------------------- -------------------------------------- All Other Fees N/A $394,000 ---------------------------------------- -------------------------------------- -------------------------------------- Total N/A $394,000 ---------------------------------------- -------------------------------------- --------------------------------------
(e)(1) Pre-Approval Policies and Procedures. The Audit Committee ("Committee") of the registrant is responsible for pre-approving (i) all audit and permissible non-audit services to be provided by the independent registered public accounting firm to the registrant and (ii) all permissible non-audit services to be provided by the independent registered public accounting firm to Credit Suisse and any Covered Services Provider if the engagement relates directly to the operations and financial reporting of the registrant. The Committee may delegate its responsibility to pre-approve any such audit and permissible non-audit services to the Chairperson of the Committee, and the Chairperson shall report to the Committee, at its next regularly scheduled meeting after the Chairperson's pre-approval of such services, his or her decision(s). The Committee may also establish detailed pre-approval policies and procedures for pre-approval of such services in accordance with applicable laws, including the delegation of some or all of the Committee's pre-approval responsibilities to other persons (other than Credit Suisse or the registrant's officers). Pre-approval by the Committee of any permissible non-audit services shall not be required so long as: (i) the aggregate amount of all such permissible non-audit services provided to the registrant, Credit Suisse and any Covered Services Provider constitutes not more than 5% of the total amount of revenues paid by the registrant to its independent registered public accounting firm during the fiscal year in which the permissible non-audit services are provided; (ii) the permissible non-audit services were not recognized by the registrant at the time of the engagement to be non-audit services; and (iii) such services are promptly brought to the attention of the Committee and approved by the Committee (or its delegate(s)) prior to the completion of the audit. (e)(2) The information in the table below sets forth the percentages of fees for services (other than audit, review or attest services) rendered by PwC to the registrant for which the pre-approval requirement was waived pursuant to Rule 2-01(c)(7)(i)(C) of Regulation S-X:
---------------------------------------- -------------------------------------- -------------------------------------- 2004 2005 ---------------------------------------- -------------------------------------- -------------------------------------- Audit-Related Fees N/A N/A ---------------------------------------- -------------------------------------- -------------------------------------- Tax Fees N/A N/A ---------------------------------------- -------------------------------------- -------------------------------------- All Other Fees N/A N/A ---------------------------------------- -------------------------------------- -------------------------------------- Total N/A N/A ---------------------------------------- -------------------------------------- --------------------------------------
The information in the table below sets forth the percentages of fees for services (other than audit, review or attest services) rendered by PwC to Credit Suisse and any Covered Services Provider required to be approved pursuant to Rule 2-01(c)(7)(ii)of Regulation S-X, for the registrant's fiscal years ended December 31, 2004 and December 31, 2005:
---------------------------------------- -------------------------------------- -------------------------------------- 2004 2005 ---------------------------------------- -------------------------------------- -------------------------------------- Audit-Related Fees N/A N/A ---------------------------------------- -------------------------------------- -------------------------------------- Tax Fees N/A N/A ---------------------------------------- -------------------------------------- -------------------------------------- All Other Fees N/A N/A ---------------------------------------- -------------------------------------- -------------------------------------- Total N/A N/A ---------------------------------------- -------------------------------------- --------------------------------------
(f) Not Applicable. (g) The aggregate fees billed by PwC for non-audit services rendered to the registrant, Credit Suisse and Covered Service Providers for the fiscal years ended December 31, 2004 and December 31, 2005 were $2,827 and $5,593, respectively. (h) Not Applicable. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. Form N-CSR disclosure requirement is not applicable to the registrant. ITEM 6. SCHEDULE OF INVESTMENTS. Included as part of the report to shareholders filed under Item 1 of this Form. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Form N-CSR disclosure requirement is not applicable to the registrant. ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Form N-CSR disclosure requirement is not applicable to the registrant. ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. Form N-CSR disclosure requirement is not applicable to the registrant. ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. None ITEM 11. 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 second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting. ITEM 12. EXHIBITS. (a)(1) Registrant's Code of Ethics is an exhibit to this report. (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 LARGE CAP BLEND FUND, INC. /s/ Steven B. Plump ------------------- Name: Steven B. Plump Title: Chief Executive Officer Date: March 8, 2006 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/ Steven B. Plump ------------------- Name: Steven B. Plump Title: Chief Executive Officer Date: March 8, 2006 /s/ Michael A. Pignataro ------------------------ Name: Michael A. Pignataro Title: Chief Financial Officer Date: March 8, 2006