-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, SLAyXd6PefKkj40ZlbJDE4F1Bcoetl8rHeZT+kIoetslgTrDFl1A+9EGmHtxa3b6 o7SXOI1uubJ/Jni7hm1j4Q== 0001047469-03-036742.txt : 20031110 0001047469-03-036742.hdr.sgml : 20031110 20031110172800 ACCESSION NUMBER: 0001047469-03-036742 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20030831 FILED AS OF DATE: 20031110 EFFECTIVENESS DATE: 20031110 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CREDIT SUISSE SELECT EQUITY FUND INC CENTRAL INDEX KEY: 0001067479 IRS NUMBER: 510380617 STATE OF INCORPORATION: MD FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-08921 FILM NUMBER: 03989602 BUSINESS ADDRESS: STREET 1: 466 LEXINGTON AVENUE CITY: NEW YORK STATE: NY ZIP: 10017-3147 BUSINESS PHONE: 2127166081 MAIL ADDRESS: STREET 1: 466 LEXINGTON AVENUE CITY: NEW YORK STATE: NY ZIP: 10017-3147 FORMER COMPANY: FORMER CONFORMED NAME: WARBURG PINCUS FOCUS FUND INC DATE OF NAME CHANGE: 20000502 FORMER COMPANY: FORMER CONFORMED NAME: WARBURG PINCUS SELECT ECONOMIC VALUE EQUITY FUND INC DATE OF NAME CHANGE: 19980804 N-CSR 1 a2120969zn-csr.txt N-CSR 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. 811-8921 ------------------------------------------------ CREDIT SUISSE SELECT EQUITY FUND, INC. -------------------------------------------------------- (Exact Name of Registrant as Specified in Charter) 466 Lexington Avenue, New York, New York 10017-3140 -------------------------------------------------------------- (Address of Principal Executive Offices) (Zip Code) Hal Liebes, Esq. Credit Suisse Select Equity Fund, Inc. 466 Lexington Avenue New York, New York 10017-3140 Registrant's telephone number, including area code:(212) 875-3500 Date of fiscal year end: August 31, 2003 Date of reporting period: September 1, 2002 to August 31, 2003 ITEM 1. REPORTS TO STOCKHOLDERS. [CREDIT SUISSE ASSET MANAGEMENT LOGO] CREDIT SUISSE FUNDS ANNUAL REPORT AUGUST 31, 2003 - - CREDIT SUISSE SELECT EQUITY FUND MORE COMPLETE INFORMATION ABOUT THE FUND, INCLUDING CHARGES AND EXPENSES, IS PROVIDED IN THE PROSPECTUS, WHICH MUST PRECEDE OR ACCOMPANY THIS DOCUMENT AND 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. THE FUND'S INVESTMENT ADVISER AND CO-ADMINISTRATORS MAY WAIVE SOME FEES AND/OR REIMBURSE SOME EXPENSES, WITHOUT WHICH PERFORMANCE WOULD BE LOWER. WAIVERS AND/OR REIMBURSEMENTS ARE SUBJECT TO CHANGE. RETURNS INCLUDE CHANGE IN SHARE PRICE AND REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS. PAST PERFORMANCE CANNOT GUARANTEE FUTURE RESULTS. RETURNS AND SHARE PRICE WILL FLUCTUATE, AND REDEMPTION VALUE MAY BE MORE OR LESS THAN ORIGINAL COST. 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 AUGUST 31, 2003; THESE VIEWS AND FUND HOLDINGS MAY HAVE CHANGED SUBSEQUENT TO THESE DATES. NOTHING IN THIS DOCUMENT IS A RECOMMENDATION TO PURCHASE OR SELL SECURITIES. FUND SHARES ARE NOT DEPOSITS OR OTHER OBLIGATIONS OF CREDIT SUISSE ASSET MANAGEMENT, LLC ("CSAM") OR ANY AFFILIATE, ARE NOT FDIC-INSURED AND ARE NOT GUARANTEED BY CSAM OR ANY AFFILIATE. CREDIT SUISSE SELECT EQUITY FUND ANNUAL INVESTMENT ADVISER'S REPORT August 31, 2003 September 19, 2003 Dear Shareholder: For the 12 months ended August 31, 2003, the Common Class Shares of Credit Suisse Select Equity Fund(1) (the "Fund") had a gain of 7.26%, versus an increase of 12.07% for the S&P 500 Index.(2) The Fund's Class A, Class B and Class C Shares(3) (without the maximum sales charge of 5.75%, 4.00% and 1.00%, respectively) had gains of 7.28%, 6.42% and 6.44%, respectively for the period. The period was ultimately a positive one for the U.S. stock market, though equities struggled early on. The market reached its low point for the period in early October 2002, hurt by a great deal of uncertainty regarding a possible conflict with Iraq and a related decline in consumer sentiment. Stocks began to recover, however, rallying over the second half of the period. When the war came to a swift and seemingly successful end in April 2003, a major cloud of uncertainty lifted and investors embraced risk. Optimism over a potential recovery in the U.S. economy -- and by extension, the global economy -- also supported equities. Grounds for this optimism included historically low interest rates, a significant tax-reduction package, and an upturn in leading economic indicators. Against this backdrop, the Fund had a gain but lagged its benchmark. This underperformance was largely attributable to the March-through-June span -- the Fund was roughly even with its benchmark at the period's midway point -- when the rally was dominated by lower-quality companies (e.g., companies with debt-heavy balance sheets and/or limited near-term earnings prospects), especially in the technology and telecom sectors. Investors scooped up these long-struggling companies, as risk concerns quickly dissipated, on hopes for turnarounds should the economy improve. However, we avoided these types of companies based on our ongoing focus on current profitability and the financial ability for a company to invest for future growth. As of the end of the period, our noteworthy sector allocations (which stem from our bottom-up, fundamental stock research) included overweightings in the industrials, basic materials and healthcare areas. We were underweighted in the financial-services, technology, consumer discretionary, telecommunications and utilities sectors. We were roughly neutrally weighted in consumer staples and energy. Moving ahead, we will remain focused on companies that appear to be generating positive and/or improving economic profit. In the current environment, we believe that companies with clear, stable profits and 1 improving revenue growth could outperform. Finally, we believe that stock selection, as opposed to sector allocation, will be the main driver of relative investment results over the next year. D. Susan Everly Sheryl M. Hempel Co-Portfolio Manager Co-Portfolio Manager Margaret D. Miller Sarah J. Dyer Co-Portfolio Manager Co-Portfolio Manager Credit Suisse Asset Management, LLC THE FUND IS PERMITTED TO INVEST A GREATER PROPORTION OF ITS ASSETS IN THE SECURITIES OF A SMALLER NUMBER OF ISSUERS. AS A RESULT, THE FUND MAY BE SUBJECT TO GREATER VOLATILITY WITH RESPECT TO ITS PORTFOLIO SECURITIES THAN A FUND THAT IS DIVERSIFIED. 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 INVESTMENTS. 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 [CHART] COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE CREDIT SUISSE SELECT EQUITY FUND(1) COMMON CLASS SHARES AND THE S&P 500 INDEX(2) FROM INCEPTION (10/30/98). (UNAUDITED)
CREDIT SUISSE SELECT EQUITY FUND(1) - COMMON CLASS S&P 500 INDEX(2) 10/30/1998 $ 10,000 $ 10,000 10/31/1998 $ 10,000 $ 10,000 11/30/1998 $ 10,765 $ 10,606 12/31/1998 $ 11,220 $ 11,223 1/31/1999 $ 11,289 $ 11,685 2/28/1999 $ 11,056 $ 11,322 3/31/1999 $ 11,634 $ 11,777 4/30/1999 $ 12,437 $ 12,226 5/31/1999 $ 11,960 $ 11,943 6/30/1999 $ 12,744 $ 12,596 7/31/1999 $ 12,155 $ 12,212 8/31/1999 $ 12,619 $ 12,155 9/30/1999 $ 12,286 $ 11,819 10/31/1999 $ 12,929 $ 12,570 11/30/1999 $ 13,844 $ 12,827 12/31/1999 $ 14,292 $ 13,581 1/31/2000 $ 13,782 $ 12,899 2/29/2000 $ 14,310 $ 12,655 3/31/2000 $ 15,568 $ 13,893 4/30/2000 $ 15,780 $ 13,475 5/31/2000 $ 15,780 $ 13,199 6/30/2000 $ 16,105 $ 13,524 7/31/2000 $ 16,000 $ 13,312 8/31/2000 $ 16,836 $ 14,139 9/30/2000 $ 16,642 $ 13,393 10/31/2000 $ 16,809 $ 13,336 11/30/2000 $ 15,260 $ 12,285 12/31/2000 $ 15,076 $ 12,345 1/31/2001 $ 15,720 $ 12,783 2/28/2001 $ 14,148 $ 11,617 3/31/2001 $ 12,841 $ 10,881 4/30/2001 $ 13,817 $ 11,727 5/31/2001 $ 14,148 $ 11,805 6/30/2001 $ 13,893 $ 11,518 7/31/2001 $ 13,438 $ 11,405 8/31/2001 $ 12,680 $ 10,691 9/30/2001 $ 11,506 $ 9,827 10/31/2001 $ 11,696 $ 10,015 11/30/2001 $ 12,832 $ 10,783 12/31/2001 $ 12,766 $ 10,878 1/31/2002 $ 12,529 $ 10,719 2/28/2002 $ 12,140 $ 10,512 3/31/2002 $ 12,539 $ 10,908 4/30/2002 $ 11,855 $ 10,246 5/31/2002 $ 12,017 $ 10,171 6/30/2002 $ 11,067 $ 9,446 7/31/2002 $ 10,128 $ 8,710 8/31/2002 $ 10,118 $ 8,767 9/30/2002 $ 9,008 $ 7,814 10/31/2002 $ 9,757 $ 8,502 11/30/2002 $ 10,374 $ 9,002 12/31/2002 $ 9,721 $ 8,474 1/31/2003 $ 9,436 $ 8,252 2/28/2003 $ 9,341 $ 8,128 3/31/2003 $ 9,465 $ 8,207 4/30/2003 $ 10,007 $ 8,883 5/31/2003 $ 10,396 $ 9,351 6/30/2003 $ 10,501 $ 9,471 7/31/2003 $ 10,757 $ 9,637 8/31/2003 $ 10,852 $ 9,825
[CHART] COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE CREDIT SUISSE SELECT EQUITY FUND(1) CLASS A SHARES(3), CLASS B SHARES(3), CLASS C SHARES(3) AND THE S&P 500 INDEX(2) FROM INCEPTION (07/31/01). (UNAUDITED)
CREDIT SUISSE SELECT EQUITY CREDIT SUISSE SELECT EQUITY CREDIT SUISSE SELECT EQUITY S&P 500 INDEX(2) FUND(1) - CLASS A(3) FUND(1) - CLASS B(3) FUND(1) - CLASS C(3) 7/31/2001 $ 10,000 $ 10,000 $ 10,000 $ 10,000 8/31/2001 $ 8,891 $ 9,429 $ 9,436 $ 9,374 9/30/2001 $ 8,068 $ 8,555 $ 8,548 $ 8,617 10/31/2001 $ 8,207 $ 8,696 $ 8,682 $ 8,781 11/30/2001 $ 9,011 $ 9,535 $ 9,521 $ 9,455 12/31/2001 $ 8,958 $ 9,477 $ 9,463 $ 9,538 1/31/2002 $ 8,792 $ 9,293 $ 9,279 $ 9,399 2/28/2002 $ 8,519 $ 8,997 $ 8,990 $ 9,217 3/31/2002 $ 8,798 $ 9,293 $ 9,279 $ 9,564 4/30/2002 $ 8,319 $ 8,778 $ 8,764 $ 8,984 5/31/2002 $ 8,432 $ 8,884 $ 8,877 $ 8,918 6/30/2002 $ 7,767 $ 8,178 $ 8,178 $ 8,283 7/31/2002 $ 7,108 $ 7,480 $ 7,473 $ 7,637 8/31/2002 $ 7,101 $ 7,473 $ 7,452 $ 7,687 9/30/2002 $ 6,323 $ 6,647 $ 6,626 $ 6,852 10/31/2002 $ 6,855 $ 7,205 $ 7,183 $ 7,455 11/30/2002 $ 7,288 $ 7,649 $ 7,628 $ 7,894 12/31/2002 $ 6,826 $ 7,162 $ 7,141 $ 7,430 1/31/2003 $ 6,626 $ 6,951 $ 6,929 $ 7,235 2/28/2003 $ 6,559 $ 6,873 $ 6,859 $ 7,127 3/31/2003 $ 6,646 $ 6,965 $ 6,943 $ 7,196 4/30/2003 $ 7,026 $ 7,353 $ 7,339 $ 7,789 5/31/2003 $ 7,305 $ 7,642 $ 7,621 $ 8,199 6/30/2003 $ 7,372 $ 7,713 $ 7,684 $ 8,304 7/31/2003 $ 7,552 $ 7,889 $ 7,868 $ 8,450 8/31/2003 $ 7,618 $ 7,794 $ 7,931 $ 8,615
Past performance is not predictive of future performance. Investment return and principal value of an investment will fluctuate so that an investor's shares upon redemption may be worth more or less than their original cost. The performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. 3 AVERAGE ANNUAL RETURNS AS OF AUGUST 31, 2003(1)
SINCE 1 YEAR 3 YEAR INCEPTION ------ ------ --------- Common Class 7.26% (13.62%) 1.70% Class A Without Sales Charge 7.28% -- (9.68%) Class A With Maximum Sales Charge 1.12% -- (12.22%) Class B Without CDSC 6.42% -- (10.39%) Class B With CDSC 2.42% -- (11.25%) Class C Without CDSC 6.44% -- (10.51%) Class C With CDSC 5.44% -- (10.51%)
AVERAGE ANNUAL RETURNS AS OF SEPTEMBER 30, 2003(1)
SINCE 1 YEAR 3 YEAR INCEPTION ------ ------ --------- Common Class 17.74% (13.95%) 1.20% Class A Without Sales Charge 17.86% -- (10.25%) Class A With Maximum Sales Charge 11.08% -- (12.68%) Class B Without CDSC 16.99% -- (10.95%) Class B With CDSC 12.99% -- (11.77%) Class C Without CDSC 17.04% -- (11.06%) Class C With CDSC 16.04% -- (11.06%)
- ---------- (1) Fee waivers and/or expense reimbursements reduced expenses for the Fund, without which performance would be lower. Waivers and/or reimbursements may be discontinued at any time. (2) The Standard & Poor's 500 Index is an unmanaged index (with no defined investment objective) of common stocks. It includes reinvestment of dividends, and is a registered trademark of McGraw-Hill Co., Inc. Investors cannot invest directly in an index. (3) Total return for Class A shares for the reporting period, based on offering price (with maximum sales charge of 5.75%) was 1.12%. Total return for Class B shares for the reporting period, based on redemption value (including contingent deferred sales charge of 4%), was 2.42%. Total return for Class C shares for the reporting period, based on redemption value (including contingent deferred sales charge of 1%), was 5.44%. 4 SCHEDULE OF INVESTMENTS August 31, 2003
NUMBER OF SHARES VALUE ------------ ------------ COMMON STOCKS (94.7%) AEROSPACE & DEFENSE (4.6%) Lockheed Martin Corp. 5,400 $ 276,642 United Technologies Corp. 1,700 136,425 ------------ 413,067 ------------ BANKS (6.7%) Bank of America Corp. 3,300 261,525 Wachovia Corp. 6,000 252,900 Wells Fargo & Co. 1,773 88,898 ------------ 603,323 ------------ BEVERAGES (3.0%) Anheuser-Busch Companies, Inc. 3,300 170,082 Coca-Cola Co. 2,348 102,185 ------------ 272,267 ------------ BIOTECHNOLOGY (2.6%) Amgen, Inc.* 3,500 230,650 ------------ CHEMICALS (3.8%) E. I. du Pont de Nemours & Co. 5,400 241,596 PPG Industries, Inc. 1,800 98,838 ------------ 340,434 ------------ COMMERCIAL SERVICES & SUPPLIES (5.0%) Cendant Corp.* 13,600 244,528 Cintas Corp. 2,200 87,846 Monster Worldwide, Inc. 4,100 112,012 ------------ 444,386 ------------ COMMUNICATIONS EQUIPMENT (0.8%) Cisco Systems, Inc.* 3,800 72,770 ------------ COMPUTERS & PERIPHERALS (2.6%) Hewlett-Packard Co. 5,200 103,584 Seagate Technology 5,700 131,157 ------------ 234,741 ------------ DIVERSIFIED FINANCIALS (6.0%) Citigroup, Inc. 5,071 219,828 SPDR Trust Series 1 1,400 142,016 State Street Corp. 4,000 175,800 ------------ 537,644 ------------ ELECTRICAL EQUIPMENT (0.9%) Emerson Electric Co. 1,432 79,848 ------------ ENERGY EQUIPMENT & SERVICES (1.6%) Transocean, Inc.* 7,000 147,840 ------------ FOOD & DRUG RETAILING (0.9%) Safeway, Inc.* 3,400 82,994 ------------
See Accompanying Notes to Financial Statements. 5
NUMBER OF SHARES VALUE ------------ ------------ COMMON STOCKS (CONTINUED) HEALTHCARE EQUIPMENT & SUPPLIES (6.4%) Biomet, Inc. 7,900 $ 234,867 Medtronic, Inc. 6,900 342,102 ------------ 576,969 ------------ HEALTHCARE PROVIDERS & SERVICES (1.9%) UnitedHealth Group, Inc. 3,400 168,062 ------------ HOUSEHOLD DURABLES (1.7%) Newell Rubbermaid, Inc. 6,300 149,625 ------------ HOUSEHOLD PRODUCTS (1.9%) Clorox Co. 4,000 171,400 ------------ INSURANCE (6.1%) Chubb Corp. 2,800 190,232 Hartford Financial Services Group, Inc. 3,400 180,948 Prudential Financial, Inc. 4,800 174,768 ------------ 545,948 ------------ MACHINERY (3.1%) Illinois Tool Works, Inc. 3,900 281,931 ------------ MEDIA (8.1%) Clear Channel Communications, Inc. 5,400 243,648 General Motors Corp. Class H* 20,300 303,282 Viacom, Inc. Class B 4,000 180,000 ------------ 726,930 ------------ MULTILINE RETAIL (2.1%) Wal-Mart Stores, Inc. 3,141 185,853 ------------ OIL & GAS (4.2%) Devon Energy Corp. 3,900 201,825 Exxon Mobil Corp. 4,700 177,190 ------------ 379,015 ------------ PAPER & FOREST PRODUCTS (1.3%) International Paper Co. 2,900 117,595 ------------ PERSONAL PRODUCTS (1.3%) Estee Lauder Companies, Inc. Class A 3,500 120,715 ------------ PHARMACEUTICALS (7.1%) Abbott Laboratories 6,700 270,010 Eli Lilly & Co. 2,500 166,325 Pfizer, Inc. 6,600 197,472 ------------ 633,807 ------------ SEMICONDUCTOR EQUIPMENT & PRODUCTS (3.3%) Intel Corp. 7,800 223,236 Texas Instruments, Inc. 3,200 76,320 ------------ 299,556 ------------
See Accompanying Notes to Financial Statements. 6
NUMBER OF SHARES VALUE ------------ ------------ COMMON STOCKS (CONTINUED) SOFTWARE (6.8%) Adobe Systems, Inc. 1,600 $ 62,128 Microsoft Corp. 16,000 424,320 VERITAS Software Corp.* 3,500 120,680 ------------ 607,128 ------------ TOBACCO (0.9%) Altria Group, Inc. 2,000 82,440 ------------ TOTAL COMMON STOCKS (Cost $7,542,052) 8,506,938 ------------ PAR (000) ----- SHORT-TERM INVESTMENT (2.5%) State Street Bank and Trust Co. Euro Time Deposit, 0.750%, 9/02/03 (Cost $225,000) $ 225 225,000 ------------ TOTAL INVESTMENTS AT VALUE (97.2%) (Cost $7,767,052) 8,731,938 OTHER ASSETS IN EXCESS OF LIABILITIES (2.8%) 248,686 ------------ NET ASSETS (100.0%) $ 8,980,624 ============
- ---------- * Non-income producing security. See Accompanying Notes to Financial Statements. 7 STATEMENT OF ASSETS AND LIABILITIES August 31, 2003 ASSETS Investments at value (Cost $7,767,052) (Note 1) $ 8,731,938 Cash 758 Receivable for fund shares sold 123,539 Receivable for investments sold 105,819 Dividend and interest receivable 20,020 Receivable from investment adviser (Note 2) 4,213 Prepaid expenses 39,789 ------------ Total Assets 9,026,076 ------------ LIABILITIES Administrative services fee payable (Note 2) 1,583 Distribution fee payable (Note 2) 2,869 Other accrued expenses payable 41,000 ------------ Total Liabilities 45,452 ------------ NET ASSETS Capital stock, $0.001 par value (Note 5) 788 Paid-in capital (Note 5) 17,473,679 Undistributed net investment income 3,324 Accumulated net realized loss on investments (9,462,053) Net unrealized appreciation from investments 964,886 ------------ Net Assets $ 8,980,624 ============ COMMON SHARES Net assets $ 5,652,691 Shares outstanding 495,182 ------------ Net asset value, offering price, and redemption price per share $ 11.42 ============ A SHARES Net assets $ 1,778,032 Shares outstanding 155,439 ------------ Net asset value and redemption price per share $ 11.44 ============ Maximum offering price per share (net asset value/(1-5.75%)) $ 12.14 ============ B SHARES Net assets $ 1,108,567 Shares outstanding 98,358 ------------ Net asset value and offering price per share $ 11.27 ============ C SHARES Net assets $ 441,334 Shares outstanding 39,262 ------------ Net asset value and offering price per share $ 11.24 ============
See Accompanying Notes to Financial Statements. 8 STATEMENT OF OPERATIONS For the Year Ended August 31, 2003 INVESTMENT INCOME (Note 1) Dividends $ 117,016 Interest 3,935 ------------ Total investment income 120,951 ------------ EXPENSES Investment advisory fees (Note 2) 66,733 Administrative services fees (Note 2) 13,088 Distribution fees (Note 2) 29,181 Registration fees 61,490 Legal fees 49,972 Transfer agent fees (Note 2) 43,688 Printing fees (Note 2) 34,952 Custodian fees 29,901 Audit fees 17,751 Directors' fees 11,511 Insurance expense 7,422 Interest expense 1,405 Miscellaneous expense 6,527 ------------ Total expenses 373,621 Less: fees waived and expenses reimbursed (Note 2) (256,000) ------------ Net expenses 117,621 ------------ Net investment income 3,330 ------------ NET REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS Net realized loss from investments (1,593,661) Net change in unrealized appreciation (depreciation) from investments 1,995,917 ------------ Net realized and unrealized gain from investments 402,256 ------------ Net increase in net assets resulting from operations $ 405,586 ============
See Accompanying Notes to Financial Statements. 9 CREDIT SUISSE SELECT EQUITY FUND STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR FOR THE YEAR ENDED ENDED AUGUST 31, 2003 AUGUST 31, 2002 --------------- --------------- FROM OPERATIONS Net investment income $ 3,330 $ 31,327 Net realized loss from investments (1,593,661) (3,325,266) Net change in unrealized appreciation (depreciation) from investments 1,995,917 (44,108) ------------ ------------ Net increase (decrease) in net assets resulting from operations 405,586 (3,338,047) ------------ ------------ FROM DIVIDENDS AND DISTRIBUTIONS Dividends from net investment income Common Class Shares (7,948) (7,183) Institutional Class Shares -- (15,296) Class A Shares (478) (428) Distributions from net realized gains Common Class Shares -- (9,471) Institutional Class Shares -- (11,113) Class A Shares -- (564) Class B Shares -- (222) Class C Shares -- (225) ------------ ------------ Net decrease in net assets resulting from dividends and distributions (8,426) (44,502) ------------ ------------ FROM CAPITAL SHARE TRANSACTIONS (Note 5) Proceeds from sale of shares 7,762,808 8,147,181 Reinvestment of dividends and distributions 7,117 43,919 Net asset value of shares redeemed (11,153,194) (8,617,828) ------------ ------------ Net decrease in net assets resulting from capital share transactions (3,383,269) (426,728) ------------ ------------ Net decrease in net assets (2,986,109) (3,809,277) NET ASSETS Beginning of year 11,966,733 15,776,010 ------------ ------------ End of year $ 8,980,624 $ 11,966,733 ============ ============ Undistributed Net Investment Income $ 3,324 $ 8,420 ============ ============
See Accompanying Notes to Financial Statements. 10 FINANCIAL HIGHLIGHTS (For a Common Class Share of the Fund Outstanding Throughout Each Period)
FOR THE YEAR ENDED AUGUST 31, -------------------------------------------------------------------------- 2003 2002 2001 2000 1999(1) ---------- ---------- ---------- ---------- ---------- PER SHARE DATA Net asset value, beginning of period $ 10.66 $ 13.39 $ 19.13 $ 20.11 $ 15.95 ---------- ---------- ---------- ---------- ---------- INVESTMENT OPERATIONS Net investment income 0.01 0.01(2) 0.02 0.03(2) 0.02 Net gain (loss) on investments (both realized and unrealized) 0.76 (2.71) (4.48) 4.76 4.16 ---------- ---------- ---------- ---------- ---------- Total from investment operations 0.77 (2.70) (4.46) 4.79 4.18 ---------- ---------- ---------- ---------- ---------- LESS DIVIDENDS AND DISTRIBUTIONS Dividends from net investment income (0.01) (0.01) (0.03) (0.07) (0.02) Distributions from net realized gains -- (0.02) (1.25) (5.70) -- ---------- ---------- ---------- ---------- ---------- Total dividends and distributions (0.01) (0.03) (1.28) (5.77) (0.02) ---------- ---------- ---------- ---------- ---------- NET ASSET VALUE, END OF PERIOD $ 11.42 $ 10.66 $ 13.39 $ 19.13 $ 20.11 ========== ========== ========== ========== ========== Total return(3) 7.26% (20.21)% (24.68)% 33.42% 26.19% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (000s omitted) $ 5,653 $ 4,545 $ 7,696 $ 2,758 $ 95 Ratio of expenses to average net assets(4) 1.25% 1.19% 1.22% 1.29% 1.29%(5) Ratio of net investment income to average net assets 0.17% 0.12% 0.09% 0.18% 0.17%(5) Decrease reflected in above operating expense ratios due to waivers/reimbursements 2.87% 2.24% 1.98% 1.83% 0.45%(5) Portfolio turnover rate 155% 122% 141% 235% 209%
- ---------- (1) For the period October 30, 1998 (inception date) through August 31, 1999. (2) Per share information is calculated using the average share 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 period shown, total returns would have been lower. Total returns for periods less than one year are not annualized. (4) Interest earned on uninvested cash balances is used to offset portions of the transfer agent expense. These arrangements had no effect on the fund's Common Class expense ratio. (5) Annualized. See Accompanying Notes to Financial Statements. 11 (For a Class A Share of the Fund Outstanding Throughout Each Period)
FOR THE YEAR ENDED AUGUST 31, --------------------------------------- 2003 2002 2001(1) --------- --------- --------- PER SHARE DATA Net asset value, beginning of period $ 10.67 $ 13.39 $ 14.19 --------- --------- --------- INVESTMENT OPERATIONS Net investment income 0.01 0.01(2) 0.01 Net gain (loss) on investments (both realized and unrealized) 0.77 (2.70) (0.81) --------- --------- --------- Total from investment operations 0.78 (2.69) (0.80) --------- --------- --------- LESS DIVIDENDS AND DISTRIBUTIONS Dividends from net investment income (0.01) (0.01) -- Distributions from net realized gains -- (0.02) -- --------- --------- --------- Total dividends and distributions (0.01) (0.03) -- --------- --------- --------- NET ASSET VALUE, END OF PERIOD $ 11.44 $ 10.67 $ 13.39 ========= ========= ========= Total return(3) 7.28% (20.13)% (5.64)% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (000s omitted) $ 1,778 $ 566 $ 64 Ratio of expenses to average net assets(4) 1.25% 1.19% 1.19%(5) Ratio of net investment income to average net assets 0.22% 0.09% 0.77%(5) Decrease reflected in above operating expense ratios due to waivers/reimbursements 2.90% 2.30% 6.44%(5) Portfolio turnover rate 155% 122% 141%
- ---------- (1) For the period July 31, 2001 (inception date) through August 31, 2001. (2) Per share information is calculated using the average share outstanding method. (3) 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 period shown, total returns would have been lower. Total returns for periods less than one year are not annualized. (4) Interest earned on uninvested cash balances is used to offset portions of the transfer agent expense. These arrangements had no effect on the fund's Class A expense ratio. (5) Annualized. See Accompanying Notes to Financial Statements. 12 (For a Class B Share of the Fund Outstanding Throughout Each Period)
FOR THE YEAR ENDED AUGUST 31, --------------------------------------- 2003 2002 2001(1) --------- --------- --------- PER SHARE DATA Net asset value, beginning of period $ 10.59 $ 13.38 $ 14.19 --------- --------- --------- INVESTMENT OPERATIONS Net investment loss (0.06)(2) (0.06)(2) 0.00(3) Net gain (loss) on investments (both realized and unrealized) 0.74 (2.71) (0.81) --------- --------- --------- Total from investment operations 0.68 (2.77) (0.81) --------- --------- --------- LESS DISTRIBUTIONS Distributions from net realized gains -- (0.02) -- --------- --------- --------- NET ASSET VALUE, END OF PERIOD $ 11.27 $ 10.59 $ 13.38 ========= ========= ========= Total return(4) 6.42% (20.75)% (5.71)% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (000s omitted) $ 1,109 $ 518 $ 1 Ratio of expenses to average net assets(5) 2.00% 1.94% 1.94%(6) Ratio of net investment loss to average net assets (0.55)% (0.67)% (0.31)%(6) Decrease reflected in above operating expense ratios due to waivers/reimbursements 2.90% 2.25% 6.47%(6) Portfolio turnover rate 155% 122% 141%
- ---------- (1) For the period July 31, 2001 (inception date) through August 31, 2001. (2) Per share information is calculated using the average share outstanding method. (3) This amount represents less than $0.01 per share. (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 period shown, total returns would have been lower. Total returns for periods less than one year are not annualized. (5) Interest earned on uninvested cash balances is used to offset portions of the transfer agent expense. These arrangements had no effect on the fund's Class B expense ratio. (6) Annualized. See Accompanying Notes to Financial Statements. 13 (For a Class C Share of the Fund Outstanding Throughout Each Period)
FOR THE YEAR ENDED AUGUST 31, --------------------------------------- 2003 2002 2001(1) --------- --------- --------- PER SHARE DATA Net asset value, beginning of period $ 10.56 $ 13.39 $ 14.19 --------- --------- --------- INVESTMENT OPERATIONS Net investment loss (0.06)(2) (0.06)(2) 0.00(3) Net gain (loss) on investments (both realized and unrealized) 0.74 (2.75) (0.80) --------- --------- --------- Total from investment operations 0.68 (2.81) (0.80) --------- --------- --------- LESS DISTRIBUTIONS Distributions from net realized gains -- (0.02) -- --------- --------- --------- NET ASSET VALUE, END OF PERIOD $ 11.24 $ 10.56 $ 13.39 ========= ========= ========= Total return(4) 6.44% (21.03)% (5.64)% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (000s omitted) $ 441 $ 271 $ 102 Ratio of expenses to average net assets(5) 2.00% 1.94% 1.94%(6) Ratio of net investment loss to average net assets (0.55)% (0.65)% (0.25)%(6) Decrease reflected in above operating expense ratios due to waivers/reimbursements 2.90% 2.25% 6.43%(6) Portfolio turnover rate 155% 122% 141%
- ---------- (1) For the period July 31, 2001 (inception date) through August 31, 2001. (2) Per share information is calculated using the average share outstanding method. (3) This amount represents less than $0.01 per share. (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 period shown, total returns would have been lower. Total returns for periods less than one year are not annualized. (5) Interest earned on uninvested cash balances is used to offset portions of the transfer agent expense. These arrangements had no effect on the fund's Class C expense ratio. (6) Annualized. See Accompanying Notes to Financial Statements. 14 NOTES TO FINANCIAL STATEMENTS August 31, 2003 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Credit Suisse Select Equity Fund, Inc. (the "Fund") is registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as a non-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 Fund is authorized to offer six classes of shares: Common Class, Advisor Class, Institutional Class, Class A shares, Class B shares and Class C shares. The Fund currently offers Common Class, Class A shares, Class B shares and Class C shares. Effective December 12, 2001, the Fund closed the Common Class shares to new investors. Effective October 24, 2002, Institutional Class shares ceased operations. 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. Common Class shares of the Fund bear expenses paid pursuant to a distribution plan at an annual rate of 0.25% of the average daily net assets of the Fund's Common Class shares. Class A shares are sold with a front-end sales charge of up to 5.75% and bear expenses paid pursuant to a distribution plan at an annual rate of 0.25% of the average daily net assets of the Fund's Class A shares. 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 and bear expenses paid pursuant to a distribution plan at an annual rate of 1.00% of the average daily net assets of the Fund's Class B shares. Class C shares are sold subject to a contingent deferred sales charge of 1.00% if redeemed within the first year of purchase and bear expenses paid pursuant to a distribution plan at an annual rate of 1.00% of the average daily net assets of the Fund's Class C shares. In addition, the Common Class, Class A shares, Class B shares and Class C shares bear co-administration fees. 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 15 other objective method that takes into consideration market indices, yield curves and other specific adjustments. Securities and other assets for which market quotations are not readily available are valued at fair value as determined in good faith by the Board of Directors under procedures established by the Board of Directors in the absence of readily ascertainable market values. Debt obligations that will mature in 60 days or less are valued on the basis of amortized cost, which approximates market value, unless it is determined that this method would not represent fair value. 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 continue to qualify for and elect the tax treatment applicable to regulated investment companies under the Internal Revenue Code of 1986, as amended, and make the requisite distributions to its shareholders, which will be sufficient to relieve it from federal income and excise taxes. 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. 16 F) SHORT-TERM INVESTMENTS -- The Fund, together with other funds/portfolios advised by Credit Suisse Asset Management, LLC ("CSAM"), 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 CSAM. The short-term time deposit issued by SSB is a variable rate account classified as a short-term investment. 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 invested in a variety of investments, including certain CSAM-advised funds or the AIM Institutional Funds -- Liquid Asset Portfolio. However, in the event of default or bankruptcy by the other party to the agreement, realization and/or retention of the collateral may be subject to legal proceedings. The Fund had no securities out on loan at August 31, 2003. Credit Suisse First Boston ("CSFB"), an affiliate of CSAM, has been engaged by the Fund to act as the Fund's securities lending agent. Prior to April 1, 2003, CSFB had agreed to charge the Fund fees for its securities lending activities equal to its costs in providing services as securities lending agent and had voluntarily waived such fees through March 31, 2003. Effective April 1, 2003, the Fund and CSFB entered into an arrangement to share the income earned from securities lending activities, whereby, generally, the Fund will receive 75% and CSFB will receive 25% of the income, in accordance with the provisions of the securities lending agency agreement. If CSFB should enter into a securities lending agency agreement with another comparable investment company client under which it will receive a smaller proportion of the fees, its fee agreement with the Fund shall be reduced to such lower fee amount. There was no income for the year ended August 31, 2003. 17 NOTE 2. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES CSAM serves as investment adviser for the Fund. For its investment advisory services, CSAM 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 August 31, 2003, investment advisory fees earned and voluntarily waived and expenses reimbursed were as follows:
GROSS NET EXPENSE ADVISORY FEE WAIVER ADVISORY FEE REIMBURSEMENTS ------------ ---------- ------------ -------------- $ 66,733 $ (66,733) -- $ (189,267)
During the period covered by this report, CSAM determined that the Fund's advisory contract had lapsed due to an administrative error. CSAM has taken all necessary steps to remedy this error, including obtaining Board of Directors and shareholder approval of retention or payment of fees paid or payable to CSAM during the period the contract had lapsed and approval of a new contract on the same terms as in the lapsed contract. Credit Suisse Asset Management Securities, Inc. ("CSAMSI"), an affiliate of CSAM, 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. Prior to May 20, 2003, CSAMSI received a fee for Common Class shares calculated at an annual rate of 0.05% of the first $125 million in average daily net assets and 0.10% of the average daily net assets over $125 million, and with respect to Class A shares, Class B shares and Class C shares, received a fee calculated at an annual rate of 0.10% of the average daily net assets of such class. For the year ended August 31, 2003, co-administrative services fees earned by CSAMSI were as follows:
CLASS CO-ADMINISTRATIVE SERVICES FEE ----- ------------------------------ Common Class $ 2,909 Class A 905 Class B 681 Class C 290 ------- $ 4,785 =======
18 For its co-administrative services, SSB receives a fee, exclusive of out-of-pocket expenses, based upon the following fee schedule calculated in total for all the Credit Suisse funds/portfolios co-administered by SSB and allocated based upon relative average net assets of each fund/portfolio subject to an annual minimum fee.
AVERAGE DAILY NET ASSETS ANNUAL RATE ------------------------ ----------- First $5 billion 0.050% of average daily net assets Next $5 billion 0.035% of average daily net assets Over $10 billion 0.020% of average daily net assets
For the year ended August 31, 2003, co-administrative service fees earned by SSB (including out-of-pocket expenses) were $8,303. 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. This fee is calculated at an annual rate of 0.25% of the average daily net assets of the Common Class and Class A shares. For Class B shares and Class C shares of the Fund, the fee is calculated at an annual rate of 1.00% of average daily net assets of the Class B shares and Class C shares of the Fund. For the year ended August 31, 2003, distribution fees earned by CSAMSI were as follows:
CLASS DISTRIBUTION FEE ----- ---------------- Common Class $ 14,546 Class A 2,826 Class B 8,302 Class C 3,507 -------- $ 29,181 ========
Certain brokers, dealers and financial representatives provide transfer agent related services to the Fund, and receive compensation from CSAM. CSAM is then reimbursed by the Fund. For the year ended August 31, 2003, the Fund reimbursed CSAM $13,436, which is included in the Fund's transfer agent expense. For the year ended August 31, 2003, CSAMSI and its affiliates advised the Fund that they retained $42,333 from commissions earned on the sale of the Fund's Class A shares. Merrill Corporation ("Merrill"), an affiliate of CSAM, has been engaged by the Fund to provide certain financial printing and fulfillment services. For the year ended August 31, 2003, Merrill was paid $23,528 for its services to the Fund. 19 NOTE 3. LINE OF CREDIT The Fund, together with other funds/portfolios advised by CSAM (collectively, the "Participating Funds"), participate in a $100 million committed, unsecured line of credit facility ("Credit Facility") for temporary or emergency purposes with Deutsche Bank, A.G. as administrative agent and syndication agent and SSB as operations agent. Under the terms of the Credit Facility, the Participating Funds pay an aggregate commitment fee at a rate of 0.10% per annum on the average unused amount of the Credit Facility, which is allocated among the Participating Funds in such manner as is determined by the governing Boards of the Participating Funds. In addition, the Participating Funds pay interest on borrowings at the Federal Funds rate plus 0.50%. At August 31, 2003, the Fund had no loans outstanding under the Credit Facility. During the year ended August 31, 2003, the Fund had borrowings under the Credit Facility as follows:
AVERAGE DAILY WEIGHTED AVERAGE MAXIMUM DAILY LOAN BALANCE INTEREST RATE % LOAN OUTSTANDING ------------- ---------------- ---------------- $ 1,124,267 2.148% $ 2,678,000
NOTE 4. PURCHASES AND SALES OF SECURITIES For the year ended August 31, 2003, purchases and sales of investment securities (excluding short-term investments) were $13,345,764 and $16,971,938, respectively. NOTE 5. 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 YEAR ENDED ------------------------------------------------------------ AUGUST 31, 2003 AUGUST 31, 2002 ---------------------------- ---------------------------- SHARES VALUE SHARES VALUE ------------ ------------ ------------ ------------ Shares sold 534,199 $ 5,477,164 85,746 $ 1,082,329 Shares issued in reinvestment of dividends and distributions 625 6,672 1,174 16,076 Shares redeemed (466,046) (4,865,972) (235,386) (2,999,800) ------------ ------------ ------------ ------------ Net increase (decrease) 68,778 $ 617,864 (148,466) $ (1,901,395) ============ ============ ============ ============
20
INSTITUTIONAL CLASS(1) ------------------------------------------------------------ FOR THE YEAR ENDED ------------------------------------------------------------ AUGUST 31, 2003 AUGUST 31, 2002 ---------------------------- ---------------------------- SHARES VALUE SHARES VALUE ------------ ------------ ------------ ------------ Shares sold -- $ -- 375,867 $ 5,037,733 Shares issued in reinvestment of dividends and distributions -- -- 1,914 26,409 Shares redeemed (563,589) (5,729,876) (400,481) (5,137,634) ------------ ------------ ------------ ------------ Net decrease (563,589) $ (5,729,876) (22,700) $ (73,492) ============ ============ ============ ============
CLASS A ------------------------------------------------------------ FOR THE YEAR ENDED ------------------------------------------------------------ AUGUST 31, 2003 AUGUST 31, 2002 ---------------------------- ---------------------------- SHARES VALUE SHARES VALUE ------------ ------------ ------------ ------------ Shares sold 125,379 $ 1,315,660 59,162 $ 743,751 Shares issued in reinvestment of dividends and distributions 42 445 72 989 Shares redeemed (22,988) (249,452) (11,041) (124,324) ------------ ------------ ------------ ------------ Net increase 102,433 $ 1,066,653 48,193 $ 620,416 ============ ============ ============ ============
CLASS B ------------------------------------------------------------ FOR THE YEAR ENDED ------------------------------------------------------------ AUGUST 31, 2003 AUGUST 31, 2002 ---------------------------- ---------------------------- SHARES VALUE SHARES VALUE ------------ ------------ ------------ ------------ Shares sold 59,253 $ 615,956 64,478 $ 841,625 Shares issued in reinvestment of distributions -- -- 16 221 Shares redeemed (9,793) (99,045) (15,677) (165,046) ------------ ------------ ------------ ------------ Net increase 49,460 $ 516,911 48,817 $ 676,800 ============ ============ ============ ============
CLASS C ------------------------------------------------------------ FOR THE YEAR ENDED ------------------------------------------------------------ AUGUST 31, 2003 AUGUST 31, 2002 ---------------------------- ---------------------------- SHARES VALUE SHARES VALUE ------------ ------------ ------------ ------------ Shares sold 33,087 $ 354,028 33,878 $ 441,743 Shares issued in reinvestment of distributions -- -- 16 224 Shares redeemed (19,507) (208,849) (15,825) (191,024) ------------ ------------ ------------ ------------ Net increase 13,580 $ 145,179 18,069 $ 250,943 ============ ============ ============ ============
- ---------- (1) Effective October 24, 2002, the Institutional Class shares ceased operations. 21 On August 31, 2003, 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 CLASS SHAREHOLDERS OF OUTSTANDING SHARES ----- ------------ ---------------------- Common Class 1 41% Class A 5 52% Class B 4 48% Class C 1 64%
Some of the shareholders are omnibus accounts, which hold shares on behalf of several individual shareholders. NOTE 6. FEDERAL INCOME TAXES Income and capital gain distributions are determined in accordance with federal income tax regulations, which may differ from GAAP. These differences are primarily due to differing treatments of losses deferred due to wash sales and Post-October losses. The tax characteristics of dividends and distributions paid during the year ended August 31, 2003 and 2002 for the Fund were as follows:
ORDINARY INCOME LONG-TERM CAPITAL GAIN ----------------------- ----------------------- 2003 2002 2003 2002 ---------- ---------- ---------- ---------- $ 8,426 $ 22,907 $ -- $ 21,595
At August 31, 2003, the components of distributable earnings on a tax basis for the Fund were as follows: Undistributed ordinary income $ 3,324 Accumulated net realized loss (8,020,017) Unrealized appreciation 474,557 Undistributed Capital--Other (951,707) ------------ $ (8,493,843) ============
At August 31, 2003, the Fund had capital loss carryforwards available to offset possible future capital gains as follows:
EXPIRES AUGUST 31, ---------------------------------------------------- 2007 2010 2011 ------------ -------------- -------------- $ (438,300) $ (4,447,649) $ (3,134,068)
22 Under current tax law, certain capital losses realized after October 31 within a taxable year may be deferred and treated as occurring on the first day of the following tax year. The Fund will be unable to realize the benefit from these losses if it cannot realize gains on investments prior to the expiration of the loss carryforwards. For the tax year ended August 31, 2003, the Fund elected to defer net losses arising between November 1, 2002 and August 31, 2003 of $951,707. At August 31, 2003, the identified cost for federal income tax purposes, as well as the gross unrealized appreciation from investments for those securities having an excess of value over cost, gross unrealized depreciation from investments for those securities having an excess of cost over value and the net unrealized appreciation (depreciation) from investments were $8,257,381, $548,241, $(73,684) and $474,557, respectively. 23 REPORT OF INDEPENDENT AUDITORS To the Board of Directors and Shareholders of Credit Suisse Select Equity 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 Select Equity Fund, Inc. (the "Fund") at August 31, 2003, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended 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 with auditing standards generally accepted in the United States of America, which 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 August 31, 2003 by correspondence with the custodian, provide a reasonable basis for our opinion. PricewaterhouseCoopers LLP Philadelphia, Pennsylvania October 29, 2003 24 SHAREHOLDER MEETING RESULTS (UNAUDITED) A special meeting of shareholders of the Credit Suisse Select Equity Fund (the "Fund") was held at 466 Lexington Avenue, 16th Floor, New York, NY 10017 on April 11, 2003. The following matters were voted upon by the shareholders of the Fund and the results are presented below. Shares delivered not voted are included on the total for the proposals. All proposals were approved. 1. To Elect the Following Nominees as Directors:
FOR WITHHELD ----------- ------------ Richard H. Francis 664,993 6,042 Jack W. Fritz 664,993 6,042 Joseph D. Gallagher 664,883 6,152 Jeffrey E. Garten 664,883 6,152 Peter F. Krogh 664,883 6,152 James S. Pasman, Jr. 664,883 6,152 Steven N. Rappaport 664,993 6,042 William W. Priest 664,993 6,042 Total Eligible Shares 804,858 Total Shares Voted 671,035 % of Shares Voted 83.37%
2-A. To Approve a New Investment Advisory Agreement:
% OF TOTAL SHARES % OF TOTAL SHARES OUTSTANDING SHARES VOTED ---------- ----------------- ------------ For 662,738 82.34% 98.76% Against 4,217 0.52% 0.63% Abstain 4,080 0.51% 0.61%
2-B. To Approve the Retention or Payment of Fees Paid or Payable to CSAM:
% OF TOTAL SHARES % OF TOTAL SHARES OUTSTANDING SHARES VOTED ---------- ----------------- ------------ For 657,607 81.71% 98.00% Against 8,598 1.07% 1.28% Abstain 4,830 0.60% 0.72%
3-A. To Modify the Fundamental Investment Restriction on Borrowing Money:
% OF TOTAL SHARES % OF TOTAL SHARES OUTSTANDING SHARES VOTED ---------- ----------------- ------------ For 447,768 55.63% 66.73% Against 5,179 0.64% 0.77% Abstain 4,315 0.54% 0.64% Broker Non-Votes 213,773 26.56% 31.86%
25 3-B. To Modify the Fundamental Investment Restriction on Lending:
% OF TOTAL SHARES % OF TOTAL SHARES OUTSTANDING SHARES VOTED ---------- ----------------- ------------ For 446,062 55.42% 66.47% Against 8,161 1.01% 1.22% Abstain 3,039 0.38% 0.45% Broker Non-Votes 213,773 26.56% 31.86%
3-C. To Modify the Fundamental Investment Restriction on Real Estate Investments:
% OF TOTAL SHARES % OF TOTAL SHARES OUTSTANDING SHARES VOTED ---------- ----------------- ------------ For 449,412 55.84% 66.97% Against 4,038 0.50% 0.60% Abstain 3,812 0.47% 0.57% Broker Non-Votes 213,773 26.56% 31.86%
3-D. To Remove the Fundamental Investment Restriction on Pledging Assets:
% OF TOTAL SHARES % OF TOTAL SHARES OUTSTANDING SHARES VOTED ---------- ----------------- ------------ For 430,073 53.44% 64.09% Against 22,783 2.83% 3.39% Abstain 4,406 0.55% 0.66% Broker Non-Votes 213,773 26.56% 31.86%
4. To Change the Fund's Investment Objective from Fundamental to Non-Fundamental:
% OF TOTAL SHARES % OF TOTAL SHARES OUTSTANDING SHARES VOTED ---------- ----------------- ------------ For 446,442 55.47% 66.53% Against 6,485 0.81% 0.97% Abstain 4,335 0.54% 0.64% Broker Non-Votes 213,773 26.56% 31.86%
5-A. To Amend the Organizational Documents to Allow Involuntary Redemptions:
% OF TOTAL SHARES % OF TOTAL SHARES OUTSTANDING SHARES VOTED ---------- ----------------- ------------ For 445,299 55.33% 66.36% Against 8,123 1.01% 1.21% Abstain 3,841 0.48% 0.57% Broker Non-Votes 213,773 26.56% 31.86%
26 CREDIT SUISSE SELECT EQUITY FUND INFORMATION CONCERNING DIRECTORS AND OFFICERS (UNAUDITED)
TERM NUMBER OF OF OFFICE(1) PORTFOLIOS IN AND FUND POSITION(S) LENGTH PRINCIPAL COMPLEX OTHER NAME, ADDRESS AND HELD WITH OF TIME OCCUPATION(S) DURING OVERSEEN BY DIRECTORSHIPS DATE OF BIRTH FUND SERVED PAST FIVE YEARS DIRECTOR HELD BY DIRECTOR - ----------------- ----------- ------------ -------------------- ------------- ---------------- INDEPENDENT DIRECTORS Richard H. Francis Director, Since 1999 Currently retired 44 None c/o Credit Suisse Asset Nominating Management, LLC and Audit 466 Lexington Avenue Committee New York, New York Member 10017-3140 Date of Birth: 04/23/32 Jack W. Fritz Director, Since Fund Private investor; 43 Director of Advo, Inc. 2425 North Fish Creek Road Nominating Inception Consultant and (direct mail P.O. Box 1287 and Audit Director of Fritz advertising) Wilson, Wyoming 83014 Committee Broadcasting, Inc. Member and Fritz Date of Birth: 04/22/27 Communications (developers and operators of radio stations) (1987 - present) Jeffrey E. Garten Director, Since Fund Dean of Yale School 43 Director of Aetna, Box 208200 Nominating Inception of Management and Inc.; Director of New Haven, Connecticut and Audit William S. Beinecke Calpine Corporation; 06520-8200 Committee Professor in the Director of CarMax Member Practice of Group (used car Date of Birth: 10/29/46 International Trade dealers) and Finance (11/95 - present)
- ---------- (1) Each Director and Officer serves until his or her respective successor has been duly elected and qualified. 27
TERM NUMBER OF OF OFFICE(1) PORTFOLIOS IN AND FUND POSITION(S) LENGTH PRINCIPAL COMPLEX OTHER NAME, ADDRESS AND HELD WITH OF TIME OCCUPATION(S) DURING OVERSEEN BY DIRECTORSHIPS DATE OF BIRTH FUND SERVED PAST FIVE YEARS DIRECTOR HELD BY DIRECTOR - ----------------- ----------- ------------ -------------------- ------------- ---------------- INDEPENDENT DIRECTORS--(CONTINUED) Peter F. Krogh Director, Since 2001 Dean Emeritus and 43 Director of The 301 ICC Nominating Distinguished Carlisle Companies Inc. Georgetown University and Audit Professor of (diversified Washington, DC 20057 Committee International manufacturing company); Member Affairs at the Member of Selection Date of Birth: 02/11/37 Edmund A. Walsh Committee for Truman School of Foreign Scholars and Henry Luce Service, Georgetown Scholars; Senior University (6/95 - Associate of Center for present); Moderator Strategic and of PBS foreign International Studies; affairs television Director of numerous series (1988 - 2000) world affairs organizations James S. Pasman, Jr. Director, Since 1999 Currently retired 45 Director of Education c/o Credit Suisse Asset Nominating Management Corp. Management, LLC and Audit 466 Lexington Avenue Committee New York, New York Member 10017-3140 Date of Birth: 12/20/30 Steven N. Rappaport Director, Since 1999 Partner of Leigh 45 None Lehigh Court, LLC Nominating Court, LLC and RZ 40 East 52nd Street Committee Capital (private New York, New York Member and investment firms) 10022 Audit (7/02 - present); Committee Consultant to Date of Birth: 07/10/48 Chairman SunGard Securities Finance, Inc. from February 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
28
TERM NUMBER OF OF OFFICE(1) PORTFOLIOS IN AND FUND POSITION(S) LENGTH PRINCIPAL COMPLEX OTHER NAME, ADDRESS AND HELD WITH OF TIME OCCUPATION(S) DURING OVERSEEN BY DIRECTORSHIPS DATE OF BIRTH FUND SERVED PAST FIVE YEARS DIRECTOR HELD BY DIRECTOR - ----------------- ----------- ------------ -------------------- ------------- ---------------- INTERESTED DIRECTORS Joseph D. Gallagher(2) Director, Since 2003 Managing Director 46 None Credit Suisse Asset Chairman of and Chief Executive Management, LLC the Board Officer of CSAM 466 Lexington Avenue and Chief since 2003; Chief New York, New York Executive Executive Officer 10017-3140 Officer and Director of Credit Suisse Asset Date of Birth: 12/14/62 Management Limited, London, England, from June 2000 to 2003; Director of Credit Suisse Asset Management Funds (UK) Limited, London, England, from June 2000 to 2003; Managing Director, Head -- Asian Corporate Finance and M&A's, Credit Suisse First Boston, Hong Kong, China, from January 1998 to May 1999 William W. Priest(3) Director Since 1999 Co-Managing Partner, 50 None Steinberg Priest & Sloane Steinberg Priest & Capital Management Sloane Capital 12 East 49th Street Management since 12th Floor March 2001; Chairman New York, New York and Managing 10017 Director of CSAM from 2000 to Date of Birth: 09/24/41 February 2001, Chief Executive Officer and Managing Director of CSAM from 1990 to 2000
- ---------- (2) Mr. Gallagher is a Director who is an "interested person" of the Fund as defined in the 1940 Act, because he is an officer of CSAM. (3) Mr. Priest is a Director who is an "interested person" of the Fund as defined in the 1940 Act, because he provided consulting services to CSAM within the last two years (ending 12/31/02). 29
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 Hal Liebes Vice President Since 1999 Managing Director and Global General Counsel of Credit Suisse Asset and Secretary CSAM; Associated with CSAM since 1997; Officer Management, LLC of other Credit Suisse Funds 466 Lexington Avenue New York, New York 10017-3140 Date of Birth: 07/06/64 Michael A. Pignataro Chief Since 1999 Director and Director of Fund Administration of Credit Suisse Asset Financial CSAM; Associated with CSAM since 1984; Officer Management, LLC Officer and of other Credit Suisse Funds 466 Lexington Avenue Treasurer New York, New York 10017-3140 Date of Birth: 11/15/59 Gregory N. Bressler Assistant Since 2000 Director and Deputy General Counsel of CSAM; Credit Suisse Asset Secretary Associated with CSAM since January 2000; Management, LLC Associated with the law firm of Swidler Berlin 466 Lexington Avenue Shereff Friedman LLP from 1996 to 2000; Officer New York, New York of other Credit Suisse Funds 10017-3140 Date of Birth: 11/17/66 Rocco A. Del Guercio Assistant Since 1999 Vice President and Administrative Officer of Credit Suisse Asset Treasurer CSAM; Associated with CSAM since June 1996; Management, LLC Officer of other Credit Suisse Funds 466 Lexington Avenue New York, New York 10017-3140 Date of Birth: 04/28/63 Joseph Parascondola Assistant Since 2000 Assistant Vice President of CSAM; Associated Credit Suisse Asset Treasurer with CSAM since April 2000; Assistant Vice Management, LLC President, Deutsche Asset Management from 466 Lexington Avenue January 1999 to April 2000; Assistant Vice New York, New York President, Weiss, Peck & Greer LLC from 10017-3140 November 1995 to December 1998; Officer of other Credit Suisse Funds Date of Birth: 06/05/63
30
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--(CONTINUED) Robert M. Rizza Assistant Since Assistant Vice President of CSAM, since January Credit Suisse Asset Treasurer 2002 2001; Associated with CSAM since 1998; Officer Management, LLC of other Credit Suisse Funds 466 Lexington Avenue New York, New York 10017-3140 Date of Birth: 12/09/65
The Statement of Additional Information includes additional information about the Directors and is available, without charge, upon request, by calling 800-927-2874. 31 TAX INFORMATION LETTER August 31, 2003 IMPORTANT TAX INFORMATION FOR CORPORATE SHAREHOLDERS (UNAUDITED) Corporate shareholders should note for the year ended August 31, 2003, 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 August 31, 2003 certain dividends paid by Select Equity 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 2003 Form 1099-DIV. 32 P.O. BOX 55030, BOSTON, MA 02205-5030 [CREDIT SUISSE ASSET MANAGEMENT LOGO] 800-927-2874 - www.csam-americas.com CREDIT SUISSE ASSET MANAGEMENT SECURITIES, INC., DISTRIBUTOR. WPSEQ-2-0803 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 10(a)(1) to this Form. There were no amendments to the code during the fiscal year ended August 31, 2003. There were no waivers or implicit waivers from the code granted by the registrant during the fiscal year ended August 31, 2003. 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: Richard H. Francis, James S. Pasman, Jr., and Steven N. Rappaport. Each audit committee financial expert is "independent" for purposes of this item. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Form N-CSR disclosure requirement is not yet effective with respect to the Registrant. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. Not applicable to the Registrant. ITEM 6. [RESERVED] ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable to the Registrant. ITEM 8. [RESERVED] ITEM 9. CONTROLS AND PROCEDURES. (a) As of a date within 90 days from the filing date of this report, the principal executive officer and principal financial officer concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the "Act")) were effective based on their evaluation of the disclosure controls and procedures required by Rule 30a-3(b) under the Act and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934. (b) There were no changes in registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the registrant's second fiscal half-year that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting. ITEM 10. EXHIBITS. (a)(1) The 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. (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 SELECT EQUITY FUND, INC. /s/ Joseph D. Gallagher ----------------------- Name: Joseph D. Gallagher Title: Chief Executive Officer Date: November 10, 2003 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. /s/ Joseph D. Gallagher ----------------------- Name: Joseph D. Gallagher Title: Chief Executive Officer Date: November 10, 2003 /s/ Michael A. Pignataro ------------------------ Name: Michael A. Pignataro Title: Chief Financial Officer Date: November 10, 2003 EX-99.CODEETH 3 a2120969zex-99_codeeth.txt EXHIBIT 99.CODEETH EX-99.CODE ETH EXHIBIT 10(a)(1) CODE OF ETHICS CREDIT SUISSE FUNDS CREDIT SUISSE INSTITUTIONAL FUNDS CREDIT SUISSE CLOSED-END FUNDS CODE OF ETHICS FOR SENIOR OFFICERS PREAMBLE Section 406 of the Sarbanes-Oxley Act of 2002 directs that rules be adopted disclosing whether a company has a code of ethics for senior financial officers. The Securities and Exchange Commission (the "SEC") has adopted rules requiring annual disclosure of an investment company's code of ethics applicable to the company's principal executive as well as principal financial officers, if such a code has been adopted. In response, the above Funds (each a "Fund", and together the "Funds") have adopted this Code of Ethics. STATEMENT OF POLICY It is the obligation of the senior officers of the Funds to provide full, fair, timely and comprehensible disclosure--financial and otherwise--to Fund shareholders, regulatory authorities and the general public. In fulfilling that obligation, senior officers must act ethically, honestly and diligently. This Code is intended to enunciate guidelines to be followed by persons who serve the Funds in senior officerships. No Code can address every situation that a senior officer might face; however, as a guiding principle, senior officers should strive to implement the spirit as well as the letter of applicable laws, rules and regulations, and to provide the type of clear and complete disclosure and information Fund shareholders have a right to expect. The purpose of this Code of Ethics is to promote high standards of ethical conduct by Covered Persons (as defined below) in their capacities as officers of the Funds, to instruct them as to what is considered to be inappropriate and unacceptable conduct or activities for officers and to prohibit such conduct or activities. This Code supplements other policies that the Funds and their adviser have adopted or may adopt in the future with which Fund officers are also required to comply (e.g., code of ethics relating to personal trading and conduct). COVERED PERSONS This Code of Ethics applies to those persons appointed by the Fund's Board of Directors as Chief Executive Officer, President, Chief Financial Officer and Chief Accounting Officer, or persons performing similar functions. It is recognized that each of such persons currently is a full-time employee of Credit Suisse Asset Management LLC ("CSAM"), each Fund's investment adviser. PROMOTION OF HONEST AND ETHICAL CONDUCT In serving as an officer of the Funds, each Covered Person must maintain high standards of honesty and ethical conduct and must encourage his colleagues who provide services to the Funds, whether directly or indirectly, to do the same. Each Covered Person understands that as an officer of a Fund, he has a duty to act in the best interests of the Fund and its shareholders. The interests of other CSAM clients or CSAM itself or the Covered Person's personal interests should not be allowed to compromise the Covered Person's fulfilling his duties as an officer of the Fund. The governing Boards of the Funds recognize that the Covered Persons are also officers or employees of CSAM. Furthermore, the governing Boards of the Funds recognize that, subject to the Covered Person's fiduciary duties to the Funds, the Covered Persons will in the normal course of their duties (whether formally for the Funds or for CSAM, or for both) be involved in establishing policies and implementing decisions that will have different effects on CSAM and the Funds. The governing Boards of the Funds recognize that the participation of the Covered Persons in such activities is inherent in the contractual relationship between the Funds and CSAM and/or its affiliates, and is consistent with the expectation of the governing Boards of the performance by the Covered Persons of their duties as officers of the Funds. If a Covered Person believes that his responsibilities as an officer or employee of CSAM are likely to materially compromise his objectivity or his ability to perform the duties of his role as an officer of the Funds, he should consult with CSAM's general counsel, the Funds' chief legal officer or outside counsel, or counsel to the independent Directors/Trustees of the relevant Fund or Funds. Under appropriate circumstances, a Covered Person should also consider whether to present the matter to the Directors/Trustees of the relevant Fund or Funds or a committee thereof. No Covered Person shall suggest that any person providing, or soliciting to be retained to provide, services to a Fund give a gift or an economic benefit of any kind to him in connection with the person's retention or the provision of services. PROMOTION OF FULL, FAIR, ACCURATE, TIMELY AND UNDERSTANDABLE DISCLOSURE No Covered Person shall create or further the creation of false or misleading information in any SEC filing or report to Fund shareholders. No Covered Person shall conceal or fail to disclose information within the Covered Person's possession legally required to be disclosed or necessary to make the disclosure made not misleading. If a Covered Person shall become aware that information filed with the SEC or made available to the public contains any false or misleading information or omits to disclose necessary information, he shall promptly report it to CSAM's general counsel or Fund counsel, who shall advise such Covered Person whether corrective action is necessary or appropriate. Each Covered Person, consistent with his responsibilities, shall exercise appropriate supervision over, and shall assist, relevant Fund service providers in developing financial information and other disclosure that complies with relevant law and presents information in a clear, comprehensible and complete manner. Each Covered Person shall use his best efforts within his area of expertise to assure that Fund reports reveal, rather than conceal, the relevant Fund's financial condition. Each Covered Person shall seek to obtain additional resources if he believes that available resources are inadequate to enable the Funds to provide full, fair and accurate financial information and other disclosure to regulators and Fund shareholders. Each Covered Person shall inquire of other Fund officers and service providers, as appropriate, to assure that information provided is accurate and complete and presented in an understandable format using comprehensible language. Each Covered Person shall diligently perform his services to the Funds, so that information can be gathered and assessed early enough to facilitate timely filings and issuance of reports and required certifications. PROMOTION OF COMPLIANCE WITH APPLICABLE GOVERNMENT LAWS, RULES AND REGULATIONS Each Covered Person shall become and remain knowledgeable concerning the laws and regulations relating to the Funds and their operations and shall act with competence and due care in serving as an officer of the Funds. Each Covered Person with specific responsibility for financial statement disclosure will become and remain knowledgeable concerning relevant auditing standards, generally accepted accounting principles, FASB pronouncements and other accounting and tax literature and developments. Each Covered Person shall devote sufficient time to fulfilling his responsibilities to the Funds, recognizing that he will devote substantial time to providing services to other CSAM clients and will perform other activities as an employee of CSAM. Each Covered Person shall cooperate with a Fund's independent auditors, regulatory agencies and internal auditors in their review or inspection of the Fund and its operations. No Covered Person shall knowingly violate any law or regulation relating to the Funds or their operations or seek to illegally circumvent any such law or regulation. No Covered Person shall engage in any conduct involving dishonesty, fraud, deceit or misrepresentation involving the Funds or their operations. PROMOTING PROMPT INTERNAL REPORTING OF VIOLATIONS Each Covered Person shall promptly report his own violations of this Code and violations by other Covered Persons of which he is aware to the Chairman of the relevant Fund's Audit Committee. Any requests for a waiver from or an amendment to this Code shall be made to the Chairman of the relevant Fund's Audit Committee. All waivers and amendments shall be disclosed as required by law. SANCTIONS Failure to comply with this Code will subject the violator to appropriate sanctions, which will vary based on the nature and severity of the violation. Such sanctions may include censure, suspension or termination of position as an officer of the Fund. Sanctions shall be imposed by the relevant Fund's Audit Committee, subject to review by the entire Board of Directors/Trustees of the Fund. Each Covered Person shall be required to certify annually whether he has complied with this Code. NO RIGHTS CREATED This Code of Ethics is a statement of certain fundamental principles, policies and procedures that govern the Funds' senior officers in the conduct of the Funds' business. It is not intended to and does not create any rights in any employee, investor, supplier, competitor, shareholder or any other person or entity. RECORDKEEPING The Funds will maintain and preserve for a period of not less than six (6) years from the date such action is taken, the first two (2) years in an easily accessible place, a copy of the information or materials supplied to the Board (1) that provided the basis for any amendment or waiver to this Code and (2) relating to any violation of the Code and sanctions imposed for such violation, together with a written record of the approval or action taken by the relevant Board. AMENDMENTS The Directors/Trustees will make and approve such changes to this Code of Ethics as they deem necessary or appropriate to effectuate the purposes of this Code. Dated: May 20, 2003 CODE OF ETHICS FOR SENIOR OFFICERS: I HEREBY CERTIFY THAT: (1) I have read and I understand the Code of Ethics for Senior Officers adopted by the Credit Suisse Funds, the Credit Suisse Institutional Funds and the Credit Suisse Closed-End Funds (the "Code of Ethics"); (2) I recognize that I am subject to the Code of Ethics; (3) I have complied with the requirements of the Code of Ethics during the calendar year ending December 31, _______; and (4) I have reported all violations of the Code of Ethics required to be reported pursuant to the requirements of the Code during the calendar year ending December 31, _______. Set forth below exceptions to items (3) and (4), if any: ---------------------------------------- ---------------------------------------- ---------------------------------------- Name: ------------------------------ Date: EX-99.CERT 4 a2120969zex-99_cert.txt EXHIBIT 99.CERT EX-99.CERT EXHIBIT 10(A)(2) CERTIFICATIONS I, Michael A. Pignataro, certify that: 1. I have reviewed this report on Form N-CSR of Credit Suisse Select Equity Fund, Inc.; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (c) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: November 10, 2003 /s/ Michael A. Pignataro - ------------------------ Michael A. Pignataro Chief Financial Officer I, Joseph D. Gallagher, certify that: 1. I have reviewed this report on Form N-CSR of Credit Suisse Select Equity Fund, Inc.; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (c) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected. or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial data information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: November 10, 2003 /s/ Joseph D. Gallagher - ----------------------- Joseph D. Gallagher Chief Executive Officer EX-99.906CERT 5 a2120969zex-99_906cert.txt EXHIBIT 99.906CERT EX-99.906CERT EXHIBIT 10(b) SECTION 906 CERTIFICATIONS SECTION 906 CERTIFICATION Joseph D. Gallagher, Chief Executive Officer, and Michael A. Pignataro, Chief Financial Officer, of Credit Suisse Select Equity Fund, Inc. (the "Fund"), each certify to his knowledge that: (1) The Fund's periodic report on Form N-CSR for the period ended August 31, 2003 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and (2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Fund. /s/ Joseph D. Gallagher /s/ Michael A. Pignataro ----------------------- ------------------------ Joseph D. Gallagher Michael A. Pignataro Chief Executive Officer Chief Financial Officer November 10, 2003 November 10, 2003 A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to the Fund and will be retained by the Fund and furnished to the Securities and Exchange Commission or its staff upon request. -----END PRIVACY-ENHANCED MESSAGE-----