N-CSRS 1 file001.txt CREDIT SUISSE CAPITAL FUNDS 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. 811-04604 --------------------------------------------------------------------- Credit Suisse Capital Funds ------------------------------------------------------------------------ (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 Capital Funds 466 Lexington Avenue New York, New York 10017-3140 Registrant's telephone number, including area code: (212) 875-3500 Date of fiscal year end: October 31 Date of reporting period: November 1, 2004 to April 30, 2005 ITEM 1. REPORTS TO STOCKHOLDERS. CREDIT | ASSET SUISSE | MANAGEMENT CREDIT SUISSE FUNDS Semiannual Report April 30, 2005 (unaudited) o CREDIT SUISSE LARGE CAP VALUE FUND o CREDIT SUISSE SMALL CAP VALUE FUND The Funds' investment objectives, risks, charges and expenses (which should be considered carefully before investing), and more complete information about the the Funds, 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 FUNDS' MANAGEMENT ARE AS OF THE DATE OF THE LETTERS AND FUNDS' HOLDINGS DESCRIBED IN THIS DOCUMENT ARE AS OF APRIL 30, 2005; THESE VIEWS AND THE FUNDS' HOLDINGS MAY HAVE CHANGED SUBSEQUENT TO THESE DATES. NOTHING IN THIS DOCUMENT IS A RECOMMENDATION TO PURCHASE OR SELL SECURITIES. FUND SHARES ARE NOT DEPOSITS OR OTHER OBLIGATIONS OF CREDIT SUISSE ASSET MANAGEMENT, LLC ("CSAM") OR ANY AFFILIATE, ARE NOT FDIC-INSURED AND ARE NOT GUARANTEED BY CSAM OR ANY AFFILIATE. FUND INVESTMENTS ARE SUBJECT TO INVESTMENT RISKS, INCLUDING LOSS OF YOUR INVESTMENT. CREDIT SUISSE LARGE CAP VALUE FUND SEMIANNUAL INVESTMENT ADVISER'S REPORT April 30, 2005 (unaudited) -------------------------------------------------------------------------------- June 1, 2005 Dear Shareholder: PERFORMANCE SUMMARY 11/01/04 - 04/30/05 SHARE CLASS/BENCHMARK PERFORMANCE Common 1 6.97% Advisor 1 6.72% Class A 1,2 6.81% Class B 1,2 6.45% Class C 1,2 6.43% Russell 1000(R) Value Index 3 6.72% Performance for the Fund's Class A shares, Class B shares and Class C shares is without the maximum sales charge of 5.75%, 4.00% and 1.00%, respectively. 2 MARKET OVERVIEW: STRONG START, BUT MOMENTUM FADES Stocks surged in the first two months of the period, aided by a concluded Presidential election that removed a good deal of political uncertainty. Encouraging employment and inflation data at the time also helped. Market sentiment turned negative in early March, however, as investors grew cautious amid signs of economic softening seemingly brought on by high oil prices and rising short term interest rates. On thte earnings front, while first-quarter 2005 results generally met or exceeded expectations, this provided little support late in the period as the future profit picture dimmed. Health care, consumer staples, and utilities stocks outperformed as investors favored relatively defensive sectors. Energy was another good performer amid high oil prices. Technology stocks and the oil-sensitive transportation sector were among the poor performers for the period. STRATEGIC REVIEW: TECHNOLOGY ADDS VALUE DESPITE OUT-OF-FAVOR SECTOR The Fund's Common Class Shares and Class A Shares outperformed the Fund's benchmark in the period, aided by good stock selection in the financial services, major oil, and transportation sectors. Our exposure within the last area was largely limited to Burlington Northern (0.88% of the Fund's portfolio as of April 30, 2005), a railroad company that performed well as commodity-shipping revenues rose. The Fund's technology stocks collectively had a gain, despite a poor environment for technology stocks generally. The Fund's energy 1 CREDIT SUISSE LARGE CAP VALUE FUND SEMIANNUAL INVESTMENT ADVISER'S REPORT (CONTINUED) April 30, 2005 (unaudited) -------------------------------------------------------------------------------- services stocks had lagging results. The Fund's consumer discretionary holdings had negative performance in both absolute and relative terms. In terms of noteworthy recent portfolio activity, our purchases included Pfizer (0.97% of the Fund's portfolio as of April 30, 2005), which had declined over the past year on product-pipeline concerns. We believed that a fair amount of negativity had become priced into the stock, which could be aided going forward by the company's recently announced cost-cutting program. We also purchased Office Depot (1.30% of the Fund's portfolio as of April 30, 2005), a retailer that we believe might be a successful turnaround story under a new CEO. The company is generating good free cash flows and we see potential for significant stock repurchases. On the sales side, we eliminated our position in Alcoa based in part on our concerns over the company's input costs. We also sold our position in Tribune, a newspaper publisher, based on a weaker than expected recovery in advertising revenues and the related increased competition from internet companies. Going forward, we will continue to adhere to our general strategy of investing in dividend-paying stocks of companies with large market capitalizations. Using proprietary bottom-up equity research and detailed quantitative analyses, we look for stocks that are deeply discounted to our view of their upside potential, in terms of valuation and/or income, with an emphasis on companies that stand to benefit from the positive impact of a likely significant event. The Credit Suisse Value Team Stephen J. Kaszynski Robert E. Rescoe 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 THAT PROJECTED, ANTICIPATED OR IMPLIED. THE FUND HAS NO OBLIGATION TO UPDATE OR REVISE FORWARD-LOOKING STATEMENTS. 2 CREDIT SUISSE LARGE CAP VALUE FUND SEMIANNUAL INVESTMENT ADVISER'S REPORT (CONTINUED) April 30, 2005 (unaudited) -------------------------------------------------------------------------------- AVERAGE ANNUAL RETURNS AS OF MARCH 31, 2005 1 --------------------------------------------- SINCE INCEPTION 1 YEAR 5 YEARS 10 YEARS INCEPTION DATE ------ ------- -------- --------- --------- Common Class 13.04% -- -- 4.98% 8/01/00 Advisor Class 12.47% -- -- 14.38% 6/06/03 Class A Without Sales Charge 12.72% 4.11% 11.96% 11.74% 7/09/92 Class A With Maximum Sales Charge 6.22% 2.89% 11.30% 11.22% 7/09/92 Class B Without CDSC 11.88% 3.34% -- 9.35% 2/28/96 Class B With CDSC 7.88% 3.34% -- 9.35% 2/28/96 Class C Without CDSC 11.88% 3.32% -- 5.05% 2/28/00 Class C With CDSC 10.88% 3.32% -- 5.05% 2/28/00 AVERAGE ANNUAL RETURNS AS OF APRIL 30, 2005 1 --------------------------------------------- SINCE INCEPTION 1 YEAR 5 YEARS 10 YEARS INCEPTION DATE ------ ------- -------- --------- --------- Common Class 11.60% -- -- 4.29% 8/01/00 Advisor Class 11.05% -- -- 12.08% 6/06/03 Class A Without Sales Charge 11.29% 3.37% 11.48% 11.42% 7/09/92 Class A With Maximum Sales Charge 4.88% 2.15% 10.82% 10.90% 7/09/92 Class B Without CDSC 10.50% 2.60% -- 8.93% 2/28/96 Class B With CDSC 6.50% 2.60% -- 8.93% 2/28/96 Class C Without CDSC 10.44% 2.59% -- 4.40% 2/28/00 Class C With CDSC 9.44% 2.59% -- 4.40% 2/28/00 RETURNS REPRESENT PAST PERFORMANCE AND INCLUDE CHANGES IN SHARE PRICE AND REINVESTMENT 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 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.CSAM.COM/US. 3 CREDIT SUISSE LARGE CAP VALUE FUND SEMIANNUAL INVESTMENT ADVISER'S REPORT (CONTINUED) April 30, 2005 (unaudited) -------------------------------------------------------------------------------- ----------------- 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 0.69%. Total return for Class B Shares for the reporting period, based on redemption value (including maximum contingent deferred sales charge of 4%), was 2.47%. Total return for Class C Shares for the reporting period, based on redemption value (including maximum contingent deferred sales charge of 1%), was 5.43%. 3 The Russell 1000(R) Value Index measures the performance of those companies in the Russell 1000(R) Index with lower price-to-book ratios and lower forecasted growth values. It is an unmanaged index of common stocks that includes reinvestment of dividends and is compiled by Frank Russell Company. Investors cannot invest directly in an index. 4 CREDIT SUISSE LARGE CAP VALUE FUND SEMIANNUAL INVESTMENT ADVISER'S REPORT (CONTINUED) April 30, 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 April 30, 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 VALUE FUND SEMIANNUAL INVESTMENT ADVISER'S REPORT (CONTINUED) April 30, 2005 (unaudited) -------------------------------------------------------------------------------- EXPENSES AND VALUE OF A $1,000 INVESTMENT FOR THE SIX MONTH PERIOD ENDED APRIL 30, 2005 --------------------------------------------------------------------------------
COMMON ADVISOR ACTUAL FUND RETURN CLASS CLASS CLASS A CLASS B CLASS C ---------- ---------- ---------- ---------- ---------- Beginning Account Value 11/1/04 $ 1,000.00 $ 1,000.00 $ 1,000.00 $ 1,000.00 $ 1,000.00 Ending Account Value 4/30/05 $ 1,069.70 $ 1,067.20 $ 1,068.10 $ 1,064.50 $ 1,064.30 Expenses Paid per $1,000* $ 4.62 $ 7.18 $ 5.90 $ 9.73 $ 9.72 HYPOTHETICAL 5% FUND RETURN Beginning Account Value 11/1/04 $ 1,000.00 $ 1,000.00 $ 1,000.00 $ 1,000.00 $ 1,000.00 Ending Account Value 4/30/05 $ 1,020.33 $ 1,017.85 $ 1,019.09 $ 1,015.37 $ 1,015.37 Expenses Paid per $1,000* $ 4.51 $ 7.00 $ 5.76 $ 9.49 $ 9.49 COMMON ADVISOR CLASS CLASS CLASS A CLASS B CLASS C ---------- ---------- ---------- ---------- ---------- ANNUALIZED EXPENSE RATIOS* 0.90% 1.40% 1.15% 1.90% 1.90%
------------- * EXPENSES ARE EQUAL TO THE FUND'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 "EXPENSES 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 VALUE FUND SEMIANNUAL INVESTMENT ADVISER'S REPORT (CONTINUED) April 30, 2005 (unaudited) -------------------------------------------------------------------------------- [BAR CHART] SECTOR BREAKDOWN* Financial Services 28.2% Other 12.5% Integrated Oils 9.1% Consumer Staples 8.1% Consumer Discretionary 7.6% Producer Durables 7.5% Health Care 7.0% Materials & Processing 5.4% Other Energy 5.2% Utilities 4.8% Technology 1.9% Short-Term Investments 1.8% Autos & Transportation 0.9% ------------- * Expressed as a percentage of total investments (excluding security lending collateral) and may vary over time. 7 CREDIT SUISSE SMALL CAP VALUE FUND SEMIANNUAL INVESTMENT ADVISER'S REPORT April 30, 2005 (unaudited) -------------------------------------------------------------------------------- June 1, 2005 Dear Shareholder: PERFORMANCE SUMMARY 11/01/04 - 04/30/05 SHARE CLASS/BENCHMARK PERFORMANCE Common 1 5.87% Class A 1,2 5.84% Class B 1,2 5.44% Class C 1,2 5.45% Russell 2000(R) Index 3 (0.15)% Russell 2000(R) Value Index 3 1.52% Performance for the Fund's Class A shares, Class B shares and Class C shares is without the maximum sales charge of 5.75%, 4.00% and 1.00%, respectively. 2 MARKET OVERVIEW: STRONG START, BUT MOMENTUM FADES Stocks surged in the first two months of the period, aided by a concluded Presidential election that removed a good deal of political uncertainty. Encouraging employment and inflation data at the time also helped. Market sentiment turned negative in early March, however, as investors grew cautious amid signs of economic softening seemingly brought on by high oil prices and rising short term interest rates. On the earnings front, while first-quarter 2005 results generally met or exceeded expectations, this provided little support late in the period as the future profit picture dimmed. Consumer staples and utilities stocks outperformed as investors favored relatively defensive sectors. The energy sector had solid performance amid high oil prices. Technology stocks struggled, especially in the small-cap area. The oil-sensitive transportation sector also had poor performance. STRATEGIC REVIEW: PRODUCER DURABLES, ENERGY HOLDINGS DRIVE OUTPERFORMANCE The Fund's gain and outperformance was driven by several factors, not the least of which was stock selection in the producer durables sector. Good performers here included Flowserve (1.34% of the Fund's portfolio as of April 30, 2005), a manufacturer of industrial equipment used in petroleum refining. The Fund's energy stocks also performed well, and our overweighting in the sector was an additional plus. The Fund's underweightings in the technology and financial services sector also proved beneficial to relative performance, while its underweighting in the utilities sector hindered relative return. 8 CREDIT SUISSE SMALL CAP VALUE FUND SEMIANNUAL INVESTMENT ADVISER'S REPORT (CONTINUED) April 30, 2005 (unaudited) -------------------------------------------------------------------------------- With regard to noteworthy portfolio activity, our purchases included 4Kids Entertainment (1.32% of the Fund's portfolio as of April 30, 2005), which we deemed attractive based on its valuation, balance sheet and potential for earnings improvements. Two other consumer names we added were Jacuzzi Brands (0.87% of the Fund's portfolio as of April 30, 2005), a turnaround story with potential margin improvement; and Landry Restaurants (0.91% of the Fund's portfolio as of April 30, 2005), a chain that was trading at a large discount to its peer group. We believe a recent acquisition could be accretive to next year's earnings. In the financial services sector, we purchased Partners Trust (0.85% of the Fund's portfolio as of April 30, 2005), a bank selling at a discount to its peers that is located in the consolidating New York state market. Noteworthy sales included eSpeed, an online trading company whose fundamentals became less attractive to us. Going forward, we will continue to seek to identify undervalued stocks of small US companies. Using proprietary bottom-up equity research, we look for stocks that are deeply discounted to our view of their upside potential, with an emphasis on companies that stand to benefit from the positive impact of a likely significant event. The Credit Suisse Value Team Stephen J. Kaszynski Robert E. Rescoe INVESTMENTS IN SMALL COMPANIES MAY BE MORE VOLATILE AND LESS LIQUID THAN INVESTMENTS IN LARGER COMPANIES. 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 THAT PROJECTED, ANTICIPATED OR IMPLIED. THE FUND HAS NO OBLIGATION TO UPDATE OR REVISE FORWARD-LOOKING STATEMENTS. 9 CREDIT SUISSE SMALL CAP VALUE FUND SEMIANNUAL INVESTMENT ADVISER'S REPORT (CONTINUED) April 30, 2005 (unaudited) -------------------------------------------------------------------------------- AVERAGE ANNUAL RETURNS AS OF MARCH 31, 2005 1 --------------------------------------------- SINCE INCEPTION 1 YEAR 5 YEARS 10 YEARS INCEPTION DATE ------ ------- -------- --------- --------- Common Class 17.98% -- -- 13.81% 8/01/00 Class A Without Sales Charge 18.00% 13.32% 12.43% 14.08% 7/09/92 Class A With Maximum Sales Charge 11.24% 11.99% 11.77% 13.55% 7/09/92 Class B Without CDSC 17.07% 12.47% -- 11.01% 2/28/96 Class B With CDSC 13.07% 12.47% -- 11.01% 2/28/96 Class C Without CDSC 17.08% 12.46% -- 14.88% 2/28/00 Class C With CDSC 16.08% 12.46% -- 14.88% 2/28/00 AVERAGE ANNUAL RETURNS AS OF APRIL 30, 2005 1 --------------------------------------------- SINCE INCEPTION 1 YEAR 5 YEARS 10 YEARS INCEPTION DATE ------ ------- -------- --------- --------- Common Class 13.00% -- -- 12.27% 8/01/00 Class A Without Sales Charge 12.99% 12.56% 11.55% 13.50% 7/09/92 Class A With Maximum Sales Charge 6.50% 11.23% 10.89% 12.98% 7/09/92 Class B Without CDSC 12.16% 11.70% -- 10.24% 2/28/96 Class B With CDSC 8.16% 11.70% -- 10.24% 2/28/96 Class C Without CDSC 12.14% 11.72% -- 13.42% 2/28/00 Class C With CDSC 11.14% 11.72% -- 13.42% 2/28/00 RETURNS REPRESENT PAST PERFORMANCE AND INCLUDE CHANGES IN SHARE PRICE AND REINVESTMENT 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 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.CSAM.COM/US. 10 CREDIT SUISSE SMALL CAP VALUE FUND SEMIANNUAL INVESTMENT ADVISER'S REPORT (CONTINUED) April 30, 2005 (unaudited) -------------------------------------------------------------------------------- ---------------- 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 0.25%. Total return for Class B shares for the reporting period, based on redemption value (including maximum contingent deferred sales charge of 4%) was 1.62%. Total return for Class C Shares for the reporting period, based on redemption value (including maximum contingent deferred sales charge of 1%), was 4.50%. 3 The Russell 2000(R) Index measures the performance of the 2,000 smallest companies in the Russell 3000(R) Index, which represent approximately 8% of the total market capitalization of the Russell 3000(R) Index. It is an unmanaged index of common stocks which includes reinvestment of dividends and is compiled by Frank Russell Company. The Russell 2000(R) Value Index measures the performance of those companies in the Russell 2000(R) with lower price-to-book ratios and lower forecasted growth values. Investors cannot invest directly in an index. 11 CREDIT SUISSE SMALL CAP VALUE FUND SEMIANNUAL INVESTMENT ADVISER'S REPORT (CONTINUED) April 30, 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 April 30, 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. 12 CREDIT SUISSE SMALL CAP VALUE FUND SEMIANNUAL INVESTMENT ADVISER'S REPORT (CONTINUED) April 30, 2005 (unaudited) -------------------------------------------------------------------------------- EXPENSES AND VALUE OF A $1,000 INVESTMENT FOR THE SIX MONTH PERIOD ENDED APRIL 30, 2005 --------------------------------------------------------------------------------
ADVISOR ACTUAL FUND RETURN CLASS CLASS A CLASS B CLASS C ---------- ---------- ---------- ---------- Beginning Account Value 11/1/04 $ 1,000.00 $ 1,000.00 $ 1,000.00 $ 1,000.00 Ending Account Value 4/30/05 $ 1,058.70 $ 1,058.40 $ 1,054.40 $ 1,054.50 Expenses Paid per $1,000* $ 7.04 $ 7.04 $ 10.85 $ 10.85 HYPOTHETICAL 5% FUND RETURN Beginning Account Value 11/1/04 $ 1,000.00 $ 1,000.00 $ 1,000.00 $ 1,000.00 Ending Account Value 4/30/05 $ 1,017.95 $ 1,017.95 $ 1,014.23 $ 1,014.23 Expenses Paid per $1,000* $ 6.90 $ 6.90 $ 10.64 $ 10.64 ADVISOR CLASS CLASS A CLASS B CLASS C ---------- ---------- ---------- ---------- ANNUALIZED EXPENSE RATIOS* 1.38% 1.38% 2.13% 2.13%
------------- * EXPENSES ARE EQUAL TO THE FUND'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 "EXPENSES 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. 13 CREDIT SUISSE SMALL CAP VALUE FUND SEMIANNUAL INVESTMENT ADVISER'S REPORT (CONTINUED) April 30, 2005 (unaudited) -------------------------------------------------------------------------------- SECTOR BREAKDOWN* FINANCIAL SERVICES 17.8% MATERIAL & PROCESSING 16.9% CONSUMER DISCRETIONARY 15.9% PRODUCER DURABLES 13.5% OTHER ENERGY 10.2% AUTOS & TRANSPORTATION 5.6% HEALTH CARE 5.5% UTILITIES 4.9% OTHER 2.9% TECHNOLOGY 2.8% SHORT-TERM INVESTMENTS 2.2% CONSUMER STAPLES 1.8% ------------ * Expressed as a percentage of total investments (excluding security lending collateral) and may vary over time. 14 CREDIT SUISSE LARGE CAP VALUE FUND SCHEDULE OF INVESTMENTS April 30, 2005 (unaudited) --------------------------------------------------------------------------------
NUMBER OF SHARES VALUE ------------- --------------- COMMON STOCKS (98.3%) AEROSPACE & DEFENSE (5.1%) Lockheed Martin Corp. 151,000 $ 9,203,450 United Technologies Corp. 80,100 8,147,772 --------------- 17,351,222 --------------- AUTO COMPONENTS (1.4%) Johnson Controls, Inc. 87,200 4,784,664 --------------- BANKS (12.8%) Bank of America Corp. 223,674 10,074,277 Mellon Financial Corp. 209,200 5,792,748 North Fork Bancorporation, Inc. 171,000 4,813,650 U.S. Bancorp 117,300 3,272,670 Wachovia Corp. 185,200 9,478,536 Wells Fargo & Co. 168,900 10,123,866 --------------- 43,555,747 --------------- BEVERAGES (1.0%) Coca-Cola Enterprises, Inc. 162,800 3,304,840 --------------- BUILDING PRODUCTS (1.1%) American Standard Companies, Inc. 84,500 3,777,995 --------------- CHEMICALS (3.7%) Du Pont (E. I.) de Nemours & Co. 172,600 8,131,186 PPG Industries, Inc. 65,900 4,451,545 --------------- 12,582,731 --------------- COMPUTERS & PERIPHERALS (0.9%) International Business Machines Corp. 39,900 3,047,562 --------------- CONTAINERS & PACKAGING (0.5%) Smurfit-Stone Container Corp.* 140,338 1,839,831 --------------- DIVERSIFIED FINANCIALS (8.9%) Capital One Financial Corp. 80,900 5,735,001 Citigroup, Inc. 227,600 10,688,096 Fannie Mae 68,300 3,684,785 Lehman Brothers Holdings, Inc. 50,600 4,641,032 Morgan Stanley 101,900 5,361,978 --------------- 30,110,892 --------------- DIVERSIFIED TELECOMMUNICATION SERVICES (3.8%) ALLTEL Corp. 43,700 2,489,152 Telus Corp. 190,000 5,667,700 Verizon Communications, Inc. 133,400 4,775,720 --------------- 12,932,572 --------------- ELECTRIC UTILITIES (1.0%) Progress Energy, Inc. 84,100 3,531,359 ---------------
See Accompanying Notes to Financial Statements. 15 CREDIT SUISSE LARGE CAP VALUE FUND SCHEDULE OF INVESTMENTS (CONTINUED) April 30, 2005 (unaudited) --------------------------------------------------------------------------------
NUMBER OF SHARES VALUE ------------- --------------- COMMON STOCKS ELECTRICAL EQUIPMENT (1.0%) Emerson Electric Co. 56,500 $ 3,540,855 --------------- ELECTRONIC EQUIPMENT & INSTRUMENTS (1.4%) Diebold, Inc.@ 95,800 4,633,846 --------------- ENERGY EQUIPMENT & SERVICES (1.7%) Weatherford International, Ltd.*@ 110,700 5,773,005 --------------- FOOD PRODUCTS (1.5%) General Mills, Inc. 104,500 5,162,300 --------------- HEALTHCARE PROVIDERS & SERVICES (2.1%) Aetna, Inc. 95,600 7,014,172 --------------- HOTELS, RESTAURANTS & LEISURE (1.1%) McDonald's Corp. 127,600 3,739,956 --------------- HOUSEHOLD DURABLES (0.7%) Maytag Corp.@ 259,900 2,518,431 --------------- HOUSEHOLD PRODUCTS (3.3%) Procter & Gamble Co. 203,900 11,041,185 --------------- INDUSTRIAL CONGLOMERATES (7.6%) General Electric Co. 290,600 10,519,720 Textron, Inc. 86,800 6,540,380 Tyco International, Ltd. 277,100 8,676,001 --------------- 25,736,101 --------------- INSURANCE (6.5%) Allstate Corp. 106,000 5,952,960 Hartford Financial Services Group, Inc. 138,300 10,008,771 St. Paul Companies, Inc. 168,800 6,043,040 --------------- 22,004,771 --------------- MACHINERY (3.5%) Eaton Corp. 87,200 5,114,280 ITT Industries, Inc. 73,800 6,675,948 --------------- 11,790,228 --------------- MEDIA (1.0%) Viacom, Inc. Class B 97,000 3,358,140 --------------- MULTILINE RETAIL (2.0%) Federated Department Stores, Inc. 116,600 6,704,500 ---------------
See Accompanying Notes to Financial Statements. 16 CREDIT SUISSE LARGE CAP VALUE FUND SCHEDULE OF INVESTMENTS (CONTINUED) April 30, 2005 (unaudited) --------------------------------------------------------------------------------
NUMBER OF SHARES VALUE ------------- --------------- COMMON STOCKS OIL & GAS (12.6%) Apache Corp. 94,000 $ 5,291,260 Burlington Resources, Inc. 93,800 4,559,618 ConocoPhillips 140,350 14,715,698 Exxon Mobil Corp. 216,100 12,324,183 Murphy Oil Corp. 42,600 3,795,234 Pioneer Natural Resources Co. 52,100 2,118,386 --------------- 42,804,379 --------------- PHARMACEUTICALS (4.9%) Johnson & Johnson 136,500 9,367,995 Pfizer, Inc. 125,000 3,396,250 Schering-Plough Corp. 185,200 3,865,124 --------------- 16,629,369 --------------- ROAD & RAIL (0.9%) Burlington Northern Santa Fe Corp. 64,500 3,112,125 --------------- SEMICONDUCTOR EQUIPMENT & PRODUCTS (1.1%) Intel Corp. 151,800 3,570,336 --------------- SPECIALTY RETAIL (2.8%) Best Buy Company, Inc. 97,800 4,923,252 Office Depot, Inc.* 233,200 4,566,056 --------------- 9,489,308 --------------- TOBACCO (2.4%) Altria Group, Inc. 125,000 8,123,750 --------------- TOTAL COMMON STOCKS (Cost $257,160,969) 333,566,172 --------------- SHORT-TERM INVESTMENTS (5.4%) State Street Navigator Prime Fund@@ 12,214,360 12,214,360 PAR (000) ------------- State Street Bank and Trust Co. Euro Time Deposit, 1.850%, 5/02/05 $ 6,040 6,040,000 --------------- TOTAL SHORT-TERM INVESTMENTS (Cost $18,254,360) 18,254,360 --------------- TOTAL INVESTMENTS AT VALUE (103.7%) (Cost $275,415,329) 351,820,532 LIABILITIES IN EXCESS OF OTHER ASSETS (-3.7%) (12,415,912) --------------- NET ASSETS (100.0%) $ 339,404,620 ===============
-------------------------------------------------------------------------------- * Non-income producing security. @ Security or portion thereof is out on loan. @@ Represents security purchased with cash collateral received for securities on loan. See Accompanying Notes to Financial Statements. 17 CREDIT SUISSE SMALL CAP VALUE FUND SCHEDULE OF INVESTMENTS April 30, 2005 (unaudited) --------------------------------------------------------------------------------
NUMBER OF SHARES VALUE ------------- --------------- COMMON STOCKS (96.7%) AEROSPACE & DEFENSE (1.1%) BE Aerospace, Inc.* 134,100 $ 1,627,974 DRS Technologies, Inc.* 36,800 1,628,400 --------------- 3,256,374 --------------- AUTO COMPONENTS (2.9%) Accuride Corp.*@ 570,700 4,947,969 Modine Manufacturing Co.* 132,800 3,596,224 --------------- 8,544,193 --------------- BANKS (8.9%) Alabama National Bancorp. 72,500 4,145,550 First Niagara Financial Group, Inc. 30,500 382,470 FirstFed Financial Corp.* 104,900 5,311,087 NewAlliance Bancshares, Inc.*@ 284,100 3,721,710 Partners Trust Financial Group, Inc. 273,100 2,774,696 Prosperity Bancshares, Inc. 122,800 3,137,540 Susquehanna Bancshares, Inc. 149,400 3,141,882 Webster Financial Corp. 81,900 3,722,355 --------------- 26,337,290 --------------- BUILDING PRODUCTS (1.6%) Griffon Corp.* 103,300 1,982,327 Jacuzzi Brands, Inc.* 311,800 2,821,790 --------------- 4,804,117 --------------- CHEMICALS (2.9%) Crompton Corp.@ 367,400 5,161,970 H.B. Fuller Co. 114,300 3,465,576 --------------- 8,627,546 --------------- COMMERCIAL SERVICES & SUPPLIES (3.2%) Banta Corp. 122,200 5,088,408 Watson Wyatt & Company Holdings 165,200 4,361,280 --------------- 9,449,688 --------------- CONSTRUCTION & ENGINEERING (1.1%) EMCOR Group, Inc.* 70,500 3,149,940 --------------- CONSTRUCTION MATERIALS (1.0%) Eagle Materials, Inc.@ 37,500 2,821,875 --------------- CONTAINERS & PACKAGING (4.0%) AptarGroup, Inc. 141,000 6,800,430 Crown Holdings, Inc. 323,600 4,870,180 --------------- 11,670,610 --------------- DIVERSIFIED FINANCIALS (3.2%) Apollo Investment Corp. 201,400 3,194,204 Assured Guaranty, Ltd. 158,000 3,011,480 National Financial Partners Corp. 40,000 1,529,600
See Accompanying Notes to Financial Statements. 18 CREDIT SUISSE SMALL CAP VALUE FUND SCHEDULE OF INVESTMENTS (CONTINUED) April 30, 2005 (unaudited) --------------------------------------------------------------------------------
NUMBER OF SHARES VALUE ------------- --------------- COMMON STOCKS DIVERSIFIED FINANCIALS Piper Jaffray Companies, Inc.* 60,100 $ 1,661,765 --------------- 9,397,049 --------------- DIVERSIFIED TELECOMMUNICATION SERVICES (1.1%) Iowa Telecommunications Services, Inc.@ 165,600 3,162,960 --------------- ELECTRIC UTILITIES (1.9%) Empire District Electric Co.@ 117,000 2,583,360 OGE Energy Corp. 109,100 3,011,160 --------------- 5,594,520 --------------- ELECTRICAL EQUIPMENT (5.6%) AMETEK, Inc. 121,100 4,586,057 Brady Corp. 199,400 5,912,210 Rayovac Corp.* 166,600 6,070,904 --------------- 16,569,171 --------------- ELECTRONIC EQUIPMENT & INSTRUMENTS (4.3%) Electro Scientific Industries, Inc.* 144,100 2,381,973 Rogers Corp.*@ 56,600 1,954,964 Roper Industries, Inc. 36,300 2,456,421 Varian, Inc.* 122,200 4,053,374 Woodhead Industries, Inc. 152,600 1,771,686 --------------- 12,618,418 --------------- ENERGY EQUIPMENT & SERVICES (3.1%) National-Oilwell Varco, Inc.* 81,010 3,219,333 Oceaneering International, Inc.*@ 185,200 6,076,412 --------------- 9,295,745 --------------- FOOD & DRUG RETAILING (1.8%) Ruddick Corp. 235,100 5,280,346 --------------- GAS UTILITIES (1.9%) National Fuel Gas Co. 94,400 2,570,512 WGL Holdings, Inc.@ 96,000 2,909,760 --------------- 5,480,272 --------------- HEALTHCARE EQUIPMENT & SUPPLIES (4.1%) Arrow International, Inc.@ 143,400 4,752,276 Cooper Companies, Inc. 69,700 4,708,235 Invacare Corp. 63,900 2,617,344 --------------- 12,077,855 --------------- HEALTHCARE PROVIDERS & SERVICES (2.5%) LifePoint Hospitals, Inc.*@ 90,800 4,036,060 Service Corp. International* 461,200 3,246,848 --------------- 7,282,908 ---------------
See Accompanying Notes to Financial Statements. 19 CREDIT SUISSE SMALL CAP VALUE FUND SCHEDULE OF INVESTMENTS (CONTINUED) April 30, 2005 (unaudited) --------------------------------------------------------------------------------
NUMBER OF SHARES VALUE ------------- --------------- COMMON STOCKS HOTELS, RESTAURANTS & LEISURE (3.1%) Carmike Cinemas, Inc. 80,900 $ 2,831,500 Landry's Restaurants, Inc. 114,100 2,966,600 Marcus Corp. 171,575 3,285,661 --------------- 9,083,761 --------------- HOUSEHOLD DURABLES (1.0%) Ethan Allen Interiors, Inc.@ 94,100 2,835,233 --------------- HOUSEHOLD PRODUCTS (0.5%) Prestige Brands Holdings, Inc.* 90,000 1,620,000 --------------- INDUSTRIAL CONGLOMERATES (2.9%) Carlisle Companies, Inc. 75,200 5,400,864 Teleflex, Inc.@ 57,400 3,069,178 --------------- 8,470,042 --------------- INSURANCE (4.0%) Allmerica Financial Corp.* 105,000 3,524,850 Platinum Underwriters Holdings, Ltd. 174,300 5,159,280 ProAssurance Corp.*@ 81,600 3,060,816 --------------- 11,744,946 --------------- IT CONSULTING & SERVICES (0.9%) Keane, Inc.* 216,400 2,575,160 --------------- MACHINERY (7.1%) Albany International Corp. Class A 86,800 2,722,048 ESCO Technologies, Inc.* 68,400 5,015,088 Flowserve Corp.* 157,600 4,374,976 NACCO Industries, Inc. Class A@ 15,400 1,603,910 Robbins & Myers, Inc.@ 66,300 1,445,340 The Manitowoc Company, Inc. 147,600 5,904,000 --------------- 21,065,362 --------------- MEDIA (3.1%) 4Kids Entertainment, Inc.*@ 212,600 4,286,016 Harte-Hanks, Inc. 171,300 4,882,050 --------------- 9,168,066 --------------- METALS & MINING (1.9%) Foundation Coal Holdings, Inc.@ 37,700 880,295 GrafTech International, Ltd.* 290,800 1,107,948 Quanex Corp.@ 70,650 3,564,999 --------------- 5,553,242 --------------- OIL& GAS (6.6%) Comstock Resources, Inc.* 142,000 3,592,600 Denbury Resources, Inc.* 204,100 6,478,134 Forest Oil Corp.* 89,200 3,436,876
See Accompanying Notes to Financial Statements. 20 CREDIT SUISSE SMALL CAP VALUE FUND SCHEDULE OF INVESTMENTS (CONTINUED) April 30, 2005 (unaudited) --------------------------------------------------------------------------------
NUMBER OF SHARES VALUE ------------- --------------- COMMON STOCKS OIL & GAS Range Resources Corp. 140,200 $ 3,175,530 W&T Offshore, Inc. 144,200 2,891,210 --------------- 19,574,350 --------------- REAL ESTATE (1.4%) Eagle Hospitality Properties Trust, Inc. 203,300 1,876,459 HRPT Properties Trust 202,900 2,384,075 --------------- 4,260,534 --------------- ROAD & RAIL (2.7%) Laidlaw International, Inc.* 171,000 3,828,690 Werner Enterprises, Inc. 217,450 4,040,221 --------------- 7,868,911 --------------- SEMICONDUCTOR EQUIPMENT & PRODUCTS (0.7%) Axcelis Technologies, Inc.* 148,300 920,943 Credence Systems Corp.*@ 196,400 1,235,356 --------------- 2,156,299 --------------- SPECIALTY RETAIL (3.3%) CSK Auto Corp.* 242,200 3,756,522 Hughes Supply, Inc. 100,600 2,625,660 Sports Authority, Inc. 123,600 3,287,760 --------------- 9,669,942 --------------- TEXTILES & APPAREL (1.3%) Warnaco Group, Inc. 173,000 3,885,580 --------------- TOTAL COMMON STOCKS (Cost $198,274,521) 284,952,305 --------------- SHORT-TERM INVESTMENTS (13.8%) State Street Navigator Prime Fund@@ 34,314,623 34,314,623 PAR (000) ------------- State Street Bank and Trust Co. Euro Time Deposit, 1.850%, 5/02/05 $ 6,382 6,382,000 --------------- TOTAL SHORT-TERM INVESTMENTS (Cost $40,696,623) 40,696,623 --------------- TOTAL INVESTMENTS AT VALUE (110.5%) (Cost $238,971,144) 325,648,928 LIABILITIES IN EXCESS OF OTHER ASSETS (-10.5%) (30,994,031) --------------- NET ASSETS (100.0%) $ 294,654,897 ===============
-------------------------------------------------------------------------------- * Non-income producing security. @ Security or portion thereof is out on loan. @@ Represents security purchased with cash collateral received for securities on loan. See Accompanying Notes to Financial Statements. 21 CREDIT SUISSE FUNDS STATEMENT OF ASSETS AND LIABILITIES April 30, 2005 (unaudited) --------------------------------------------------------------------------------
LARGE CAP SMALL CAP VALUE FUND VALUE FUND ------------- --------------- ASSETS Investments at value, including collateral for securities on loan of $12,214,360 and $34,314,623, respectively (Cost $275,415,329, and $238,971,144, respectively) (Note 2) $ 351,820,532 1 $ 325,648,928 2 Cash 979 530 Dividend and interest receivable 439,651 267,447 Receivable for fund shares sold 175,543 513,949 Receivable for investments sold -- 3,825,906 Prepaid expenses and other assets 52,295 58,946 ------------- --------------- Total Assets 352,489,000 330,315,706 ------------- --------------- LIABILITIES Advisory fee payable (Note 3) 157,088 187,250 Administrative services fee payable (Note 3) 103,148 90,188 Shareholder servicing/Distribution fee payable (Note 2) 88,116 82,557 Payable upon return of securities loaned (Note 2) 12,214,360 34,314,623 Payable for fund shares redeemed 335,306 449,013 Trustees' fee payable 2,333 2,331 Payable for investments purchased -- 381,650 Other accrued expenses payable 184,029 153,197 ------------- --------------- Total Liabilities 13,084,380 35,660,809 ------------- --------------- NET ASSETS Capital stock, $0.001 par value (Note 6) 17,009 13,573 Paid-in capital (Note 6) 247,455,609 195,515,395 Undistributed net investment income (loss) 74,159 (444,530) Accumulated net realized gain on investments and foreign currency transactions 15,452,640 12,892,675 Net unrealized appreciation from investments 76,405,203 86,677,784 ------------- --------------- Net Assets $ 339,404,620 $ 294,654,897 ============= =============== COMMON SHARES Net assets $ 659,166 $ 60,330,883 Shares outstanding 33,126 2,763,066 ------------- --------------- Net asset value, offering price, and redemption price per share $ 19.90 $ 21.83 ============= =============== ADVISOR SHARES Net assets $ 9,051,847 N/A Shares outstanding 452,177 N/A ------------- --------------- Net asset value, offering price, and redemption price per share $ 20.02 N/A ============= ===============
See Accompanying Notes to Financial Statements. 22 CREDIT SUISSE FUNDS STATEMENT OF ASSETS AND LIABILITIES (CONTINUED) April 30, 2005 (unaudited) --------------------------------------------------------------------------------
LARGE CAP SMALL CAP VALUE FUND VALUE FUND ------------- --------------- A SHARES Net assets $ 303,831,585 $ 202,722,702 Shares outstanding 15,211,159 9,244,462 ------------- --------------- Net asset value and redemption price per share $ 19.97 $ 21.93 ============= =============== Maximum offering price per share (net asset value/(1-5.75%)) $ 21.19 $ 23.27 ============= =============== B SHARES Net assets $ 22,086,044 $ 18,659,154 Shares outstanding 1,120,145 923,164 ------------- --------------- Net asset value and offering price per share $ 19.72 $ 20.21 ============= =============== C SHARES Net assets $ 3,775,978 $ 12,942,158 Shares outstanding 192,440 642,598 ------------- --------------- Net asset value and offering price per share $ 19.62 $ 20.14 ============= ===============
-------------------------------------------------------------------------------- 1 Including $11,926,832 of securities on loan. 2 Including $33,482,376 of securities on loan. See Accompanying Notes to Financial Statements. 23 CREDIT SUISSE FUNDS STATEMENT OF OPERATIONS For the Six Months Ended April 30, 2005 (unaudited) --------------------------------------------------------------------------------
LARGE CAP SMALL CAP VALUE FUND VALUE FUND ------------- --------------- INVESTMENT INCOME (Note 2) Dividends $ 3,871,790 $ 1,687,243 Interest 31,013 39,869 Securities lending 11,178 11,131 Foreign taxes withheld (7,706) -- ------------- --------------- Total investment income 3,906,275 1,738,243 ------------- --------------- EXPENSES Investment advisory fees (Note 3) 972,914 1,121,434 Administrative services fees (Note 3) 288,783 247,177 Shareholder servicing/Distribution fees (Note 3) Common Class -- 71,863 Advisor Class 25,845 -- Class A 391,707 261,149 Class B 118,420 101,265 Class C 19,570 63,449 Transfer agent fees (Note 3) 201,531 201,667 Printing fees (Note 3) 34,773 27,338 Registration fees 23,494 22,070 Audit fees 18,101 17,108 Custodian fees 16,653 15,881 Legal fees 15,356 15,417 Insurance expense 4,657 3,623 Commitment fees (Note 4) 4,407 3,585 Trustees' fees 4,321 4,321 Miscellaneous expense 6,464 5,426 ------------- --------------- Total expenses 2,146,996 2,182,773 ------------- --------------- Net investment income (loss) 1,759,279 (444,530) ------------- --------------- NET REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS AND FOREIGN CURRENCY RELATED ITEMS Net realized gain from investments 17,205,185 13,202,671 Net realized gain on foreign currency transactions 304 -- Net change in unrealized appreciation (depreciation) from investments 4,686,419 3,108,868 ------------- --------------- Net realized and unrealized gain from investments and foreign currency related items 21,891,908 16,311,539 ------------- --------------- Net increase in net assets resulting from operations $ 23,651,187 $ 15,867,009 ============= ===============
See Accompanying Notes to Financial Statements. 24 CREDIT SUISSE FUNDS STATEMENTS OF CHANGES IN NET ASSETS --------------------------------------------------------------------------------
LARGE CAP VALUE FUND SMALL CAP VALUE FUND ------------------------------------- ------------------------------------- FOR THE SIX MONTHS FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED FOR THE YEAR APRIL 30, 2005 ENDED APRIL 30, 2005 ENDED (UNAUDITED) OCTOBER 31, 2004 (UNAUDITED) OCTOBER 31, 2004 ------------------ ---------------- ------------------ ---------------- FROM OPERATIONS Net investment income (loss) $ 1,759,279 $ 3,005,688 $ (444,530) $ (873,699) Net realized gain on investments and foreign currency transactions 17,205,489 23,074,340 13,202,671 28,393,507 Net change in unrealized appreciation (depreciation) from investments and foreign currency translations 4,686,419 12,646,399 3,108,868 21,745,107 ------------------ ---------------- ------------------ ---------------- Net increase in net assets resulting from operations 23,651,187 38,726,427 15,867,009 49,264,915 ------------------ ---------------- ------------------ ---------------- FROM DIVIDENDS AND DISTRIBUTIONS Dividends from net investment income Common Class shares (4,627) (7,968) -- -- Advisor shares (45,540) (106,265) -- -- Class A shares (1,747,774) (2,867,502) -- -- Class B shares (43,276) (51,526) -- -- Class C shares (7,080) (7,128) -- -- Distributions from net realized gains Common Class shares (42,520) (19,226) (4,991,665) (2,480,205) Advisor shares (730,089) (600,700) -- -- Class A shares (19,844,244) (8,164,902) (18,702,976) (9,958,591) Class B shares (1,556,864) (798,605) (2,007,856) (1,256,227) Class C shares (248,446) (94,482) (1,230,506) (484,122) ------------------ ---------------- ------------------ ---------------- Net decrease in net assets resulting from dividends and distributions (24,270,460) (12,718,304) (26,933,003) (14,179,145) ------------------ ---------------- ------------------ ---------------- FROM CAPITAL SHARE TRANSACTIONS (Note 6) Proceeds from sale of shares 16,507,446 30,700,269 49,073,998 73,355,864 Reinvestment of dividends and distributions 22,491,425 11,727,989 24,873,671 13,222,116 Net asset value of shares redeemed (43,542,994) (86,526,431) (49,104,990) (107,878,366) ------------------ ---------------- ------------------ ---------------- Net increase (decrease) in net assets from capital share transactions (4,544,123) (44,098,173) 24,842,679 (21,300,386) ------------------ ---------------- ------------------ ---------------- Net increase (decrease) in net assets (5,163,396) (18,090,050) 13,776,685 13,785,384 NET ASSETS Beginning of period 344,568,016 362,658,066 280,878,212 267,092,828 ------------------ ---------------- ------------------ ---------------- End of period $ 339,404,620 $ 344,568,016 $ 294,654,897 $ 280,878,212 ================== ================ ================== ================ UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) $ 74,159 $ 163,177 $ (444,530) $ -- ================== ================ ================== ================
See Accompanying Notes to Financial Statements. 25 CREDIT SUISSE LARGE CAP VALUE FUND FINANCIAL HIGHLIGHTS (For a Common Class Share of the Fund Outstanding Throughout Each Period) --------------------------------------------------------------------------------
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED OCTOBER 31, APRIL 30, 2005 ------------------------------------------------------------ (UNAUDITED) 2004 2003 2002 2001 2000 1 ----------- -------- -------- -------- -------- -------- PER SHARE DATA Net asset value, beginning of period $ 19.98 $ 18.61 $ 16.82 $ 19.95 $ 24.63 $ 22.44 ----------- -------- -------- -------- -------- -------- INVESTMENT OPERATIONS Net investment income 2 0.13 0.23 0.14 0.17 0.19 0.02 Net gain (loss) on investments and foreign currency related items (both realized and unrealized) 1.25 1.87 2.10 (1.45) (2.52) 2.21 ----------- -------- -------- -------- -------- -------- Total from investment operations 1.38 2.10 2.24 (1.28) (2.33) 2.23 ----------- -------- -------- -------- -------- -------- LESS DIVIDENDS AND DISTRIBUTIONS Dividends from net investment income (0.14) (0.23) (0.14) (0.19) (0.22) (0.04) Distributions from net realized gains (1.32) (0.50) (0.31) (1.66) (2.13) -- ----------- -------- -------- -------- -------- -------- Total dividends and distributions (1.46) (0.73) (0.45) (1.85) (2.35) (0.04) ----------- -------- -------- -------- -------- -------- NET ASSET VALUE, END OF PERIOD $ 19.90 $ 19.98 $ 18.61 $ 16.82 $ 19.95 $ 24.63 =========== ======== ======== ======== ======== ======== Total return 3 6.97% 11.51% 13.63% (7.63)% (10.51)% 9.96% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (000s omitted) $ 659 $ 664 $ 737 $ 3,061 $ 3,421 $ 96 Ratio of expenses to average net assets 0.90% 4 0.95% 1.24% 1.03% 1.03% 0.43% 4 Ratio of net investment income to average net assets 1.31% 4 1.16% 0.82% 0.92% 0.86% 0.07% 4 Decrease reflected in above operating expense ratios due to waivers -- -- -- 0.29% 0.18% -- Portfolio turnover rate 19% 48% 53% 28% 38% 55%
-------------------------------------------------------------------------------- 1 For the period August 1, 2000 (inception) date through October 31, 2000. 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. 26 CREDIT SUISSE LARGE CAP VALUE FUND FINANCIAL HIGHLIGHTS (For an Advisor Class Share of the Fund Outstanding Throughout Each Period) --------------------------------------------------------------------------------
FOR THE SIX MONTHS FOR THE YEAR ENDED ENDED OCTOBER 31, APRIL 30, 2005 ----------------------- (UNAUDITED) 2004 2003 1 ------------------ ---------- ---------- PER SHARE DATA Net asset value, beginning of period $ 20.09 $ 18.71 $ 17.84 ------------------ ---------- ---------- INVESTMENT OPERATIONS Net investment income 2 0.09 0.13 0.04 Net gain on investments and foreign currency related items (both realized and unrealized) 1.25 1.88 0.83 ------------------ ---------- ---------- Total from investment operations 1.34 2.01 0.87 ------------------ ---------- ---------- LESS DIVIDENDS Dividends from net investment income (0.09) (0.13) (0.00) 3 Distributions from net realized gains (1.32) (0.50) -- ------------------ ---------- ---------- Total dividends and distributions (1.41) (0.63) -- ------------------ ---------- ---------- NET ASSET VALUE, END OF PERIOD $ 20.02 $ 20.09 $ 18.71 ================== ========== ========== Total return 4 6.72% 10.96% 4.90% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (000s omitted) $ 9,052 $ 12,228 $ 22,336 Ratio of expenses to average net assets 1.40% 5 1.45% 1.49% 5 Ratio of net investment income to average net assets 0.81% 5 0.66% 0.51% 5 Portfolio turnover rate 19% 48% 53%
-------------------------------------------------------------------------------- 1 For the period June 6, 2003 (inception date) through October 31, 2003. 2 Per share information is calculated using the average shares outstanding method. 3 This amount represents less than $(0.01) per share. 4 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. 5 Annualized. See Accompanying Notes to Financial Statements. 27 CREDIT SUISSE LARGE CAP VALUE FUND FINANCIAL HIGHLIGHTS (For a Class A Share of the Fund Outstanding Throughout Each Period) --------------------------------------------------------------------------------
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED OCTOBER 31, APRIL 30, 2005 ------------------------------------------------------------ (UNAUDITED) 2004 2003 2002 2001 2000 ----------- -------- -------- -------- -------- -------- PER SHARE DATA Net asset value, beginning of period $ 20.05 $ 18.68 $ 16.83 $ 19.96 $ 24.62 $ 23.49 ----------- -------- -------- -------- -------- -------- INVESTMENT OPERATIONS Net investment income 1 0.11 0.18 0.14 0.17 0.21 0.16 Net gain (loss) on investments and foreign currency related items (both realized and unrealized) 1.24 1.87 2.15 (1.45) (2.55) 1.78 ----------- -------- -------- -------- -------- -------- Total from investment operations 1.35 2.05 2.29 (1.28) (2.34) 1.94 ----------- -------- -------- -------- -------- -------- LESS DIVIDENDS AND DISTRIBUTIONS Dividends from net investment income (0.11) (0.18) (0.13) (0.19) (0.19) (0.12) Distributions from net realized gains (1.32) (0.50) (0.31) (1.66) (2.13) (0.69) ----------- -------- -------- -------- -------- -------- Total dividends and distributions (1.43) (0.68) (0.44) (1.85) (2.32) (0.81) ----------- -------- -------- -------- -------- -------- NET ASSET VALUE, END OF PERIOD $ 19.97 $ 20.05 $ 18.68 $ 16.83 $ 19.96 $ 24.62 =========== ======== ======== ======== ======== ======== Total return 2 6.81% 11.19% 13.97% (7.63)% (10.48)% 8.44% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (000s omitted) $ 303,832 $302,823 $306,410 $114,733 $133,665 $162,871 Ratio of expenses to average net assets 1.15% 3 1.20% 1.24% 1.03% 1.04% 1.08% Ratio of net investment income to average net assets 1.06% 3 0.91% 0.78% 0.90% 0.94% 0.71% Decrease reflected in above operating expense ratios due to waivers -- -- -- 0.28% 0.10% -- Portfolio turnover rate 19% 48% 53% 28% 38% 55%
-------------------------------------------------------------------------------- 1 Per share information is calculated using the average shares outstanding method. 2 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. 3 Annualized. See Accompanying Notes to Financial Statements. 28 CREDIT SUISSE LARGE CAP VALUE FUND FINANCIAL HIGHLIGHTS (For a Class B Share of the Fund Outstanding Throughout Each Period) --------------------------------------------------------------------------------
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED OCTOBER 31, APRIL 30, 2005 ------------------------------------------------------------ (UNAUDITED) 2004 2003 2002 2001 2000 ----------- -------- -------- -------- -------- -------- PER SHARE DATA Net asset value, beginning of period $ 19.81 $ 18.46 $ 16.66 $ 19.78 $ 24.44 $ 23.37 ----------- -------- -------- -------- -------- -------- INVESTMENT OPERATIONS Net investment income 1 0.03 0.03 0.01 0.03 0.04 -- Net gain (loss) on investments and foreign currency related items (both realized and unrealized) 1.24 1.85 2.13 (1.43) (2.52) 1.76 ----------- -------- -------- -------- -------- -------- Total from investment operations 1.27 1.88 2.14 (1.40) (2.48) 1.76 ----------- -------- -------- -------- -------- -------- LESS DIVIDENDS AND DISTRIBUTIONS Dividends from net investment income (0.04) (0.03) (0.03) (0.06) (0.05) -- Distributions from net realized gains (1.32) (0.50) (0.31) (1.66) (2.13) (0.69) ----------- -------- -------- -------- -------- -------- Total dividends and distributions (1.36) (0.53) (0.34) (1.72) (2.18) (0.69) ----------- -------- -------- -------- -------- -------- NET ASSET VALUE, END OF PERIOD $ 19.72 $ 19.81 $ 18.46 $ 16.66 $ 19.78 $ 24.44 =========== ======== ======== ======== ======== ======== Total return 2 6.45% 10.40% 13.07% (8.29)% (11.00)% 7.66% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (000s omitted) $ 22,086 $ 25,118 $ 29,696 $ 28,312 $ 33,087 $ 41,194 Ratio of expenses to average net assets 1.90% 3 1.95% 1.99% 1.78% 1.79% 1.80% Ratio of net investment income (loss) to average net assets 0.31% 3 0.16% 0.06% 0.15% 0.19% (0.01)% Decrease reflected in above operating expense ratios due to waivers -- -- -- 0.27% 0.10% -- Portfolio turnover rate 19% 48% 53% 28% 38% 55%
-------------------------------------------------------------------------------- 1 Per share information is calculated using the average shares outstanding method. 2 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. 3 Annualized. See Accompanying Notes to Financial Statements. 29 CREDIT SUISSE LARGE CAP VALUE FUND FINANCIAL HIGHLIGHTS (For a Class C Share of the Fund Outstanding Throughout Each Period) --------------------------------------------------------------------------------
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED OCTOBER 31, APRIL 30, 2005 ------------------------------------------------------------ (UNAUDITED) 2004 2003 2002 2001 2000 1 ----------- -------- -------- -------- -------- -------- PER SHARE DATA Net asset value, beginning of period $ 19.72 $ 18.38 $ 16.58 $ 19.71 $ 24.39 $ 20.87 ----------- -------- -------- -------- -------- -------- INVESTMENT OPERATIONS Net investment income (loss) 2 0.03 0.03 0.01 0.03 0.03 (0.01) Net gain (loss) on investments and foreign currency related items (both realized and unrealized) 1.23 1.84 2.13 (1.43) (2.51) 3.56 ----------- -------- -------- -------- -------- -------- Total from investment operations 1.26 1.87 2.14 (1.40) (2.48) 3.55 ----------- -------- -------- -------- -------- -------- LESS DIVIDENDS AND DISTRIBUTIONS Dividends from net investment income (0.04) (0.03) (0.03) (0.07) (0.07) (0.03) Distributions from net realized gains (1.32) (0.50) (0.31) (1.66) (2.13) -- ----------- -------- -------- -------- -------- -------- Total dividends and distributions (1.36) (0.53) (0.34) (1.73) (2.20) (0.03) ----------- -------- -------- -------- -------- -------- NET ASSET VALUE, END OF PERIOD $ 19.62 $ 19.72 $ 18.38 $ 16.58 $ 19.71 $ 24.39 =========== ======== ======== ======== ======== ======== Total return 3 6.43% 10.39% 13.14% (8.35)% (11.07)% 17.02% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (000s omitted) $ 3,776 $ 3,736 $ 3,479 $ 2,104 $ 1,916 $ 496 Ratio of expenses to average net assets 1.90% 4 1.95% 1.99% 1.78% 1.79% 1.28% 4 Ratio of net investment income (loss) to average net assets 0.31% 4 0.16% 0.06% 0.16% 0.13% (0.03)%4 Decrease reflected in above operating expense ratios due to waivers -- -- -- 0.28% 0.10% -- Portfolio turnover rate 19% 48% 53% 28% 38% 55%
-------------------------------------------------------------------------------- 1 For the period February 28, 2000 (inception date) through October 31, 2000. 2 Per share information is calculated using the average shares 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 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. 30 CREDIT SUISSE SMALL CAP VALUE FUND FINANCIAL HIGHLIGHTS (For a Common Class Share of the Fund Outstanding Throughout Each Period) --------------------------------------------------------------------------------
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED OCTOBER 31, APRIL 30, 2005 ------------------------------------------------------------ (UNAUDITED) 2004 2003 2002 2001 2000 1 ----------- -------- -------- -------- -------- -------- PER SHARE DATA Net asset value, beginning of period $ 22.66 $ 20.02 $ 18.56 $ 21.07 $ 22.62 $ 21.35 ----------- -------- -------- -------- -------- -------- INVESTMENT OPERATIONS Net investment income (loss) 2 (0.02) (0.05) (0.02) 0.02 0.04 0.02 Net gain on investments (both realized and unrealized) 1.37 3.75 3.08 0.31 1.72 1.25 ----------- -------- -------- -------- -------- -------- Total from investment operations 1.35 3.70 3.06 0.33 1.76 1.27 ----------- -------- -------- -------- -------- -------- LESS DIVIDENDS AND DISTRIBUTIONS Dividends from net investment income -- -- (0.01) (0.05) (0.09) -- Distributions from net realized gains (2.18) (1.06) (1.59) (2.79) (3.22) -- ----------- -------- -------- -------- -------- -------- Total dividends and distributions (2.18) (1.06) (1.60) (2.84) (3.31) -- ----------- -------- -------- -------- -------- -------- NET ASSET VALUE, END OF PERIOD $ 21.83 $ 22.66 $ 20.02 $ 18.56 $ 21.07 $ 22.62 =========== ======== ======== ======== ======== ======== Total return 3 5.87% 19.14% 17.75% 0.61% 9.79% 5.95% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (000s omitted) $ 60,331 $ 50,068 $ 47,969 $ 45,075 $ 30,667 $ 105 Ratio of expenses to average net assets 1.38% 4 1.42% 1.48% 1.32% 1.33% 0.34% 4 Ratio of net investment income (loss) to average net assets (0.20)% 4 (0.22)% (0.10)% 0.12% 0.18% 0.09% 4 Decrease reflected in above operating expense ratios due to waivers -- -- 0.04% 0.14% 0.02% -- Portfolio turnover rate 11% 41% 30% 18% 54% 42%
-------------------------------------------------------------------------------- 1 For the period August 1, 2000 (inception date) through October 31, 2000. 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. 31 CREDIT SUISSE SMALL CAP VALUE FUND FINANCIAL HIGHLIGHTS (For a Class A Share of the Fund Outstanding Throughout Each Period) --------------------------------------------------------------------------------
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED OCTOBER 31, APRIL 30, 2005 ------------------------------------------------------------ (UNAUDITED) 2004 2003 2002 2001 2000 ----------- -------- -------- -------- -------- -------- PER SHARE DATA Net asset value, beginning of period $ 22.75 $ 20.10 $ 18.62 $ 21.09 $ 22.54 $ 20.52 ----------- -------- -------- -------- -------- -------- INVESTMENT OPERATIONS Net investment income (loss) 1 (0.02) (0.05) (0.02) 0.02 0.05 0.06 Net gain on investments (both realized and unrealized) 1.38 3.76 3.10 0.33 1.76 4.05 ----------- -------- -------- -------- -------- -------- Total from investment operations 1.36 3.71 3.08 0.35 1.81 4.11 ----------- -------- -------- -------- -------- -------- LESS DIVIDENDS AND DISTRIBUTIONS Dividends from net investment income -- -- (0.01) (0.03) (0.04) (0.04) Distributions from net realized gains (2.18) (1.06) (1.59) (2.79) (3.22) (2.05) ----------- -------- -------- -------- -------- -------- Total dividends and distributions (2.18) (1.06) (1.60) (2.82) (3.26) (2.09) ----------- -------- -------- -------- -------- -------- NET ASSET VALUE, END OF PERIOD $ 21.93 $ 22.75 $ 20.10 $ 18.62 $ 21.09 $ 22.54 =========== ======== ======== ======== ======== ======== Total return 2 5.84% 19.11% 17.80% 0.71% 9.70% 21.69% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (000s omitted) $ 202,723 $198,773 $188,318 $151,340 $199,213 $188,501 Ratio of expenses to average net assets 1.38% 3 1.42% 1.48% 1.32% 1.33% 1.39% Ratio of net investment income (loss) to average net assets (0.20)% 3 0.22% (0.11)% 0.11% 0.25% 0.28% Decrease reflected in above operating expense ratios due to waivers -- -- 0.04% 0.12% 0.02% -- Portfolio turnover rate 11% 41% 30% 18% 54% 42%
-------------------------------------------------------------------------------- 1 Per share information is calculated using the average shares outstanding method. 2 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. 3 Annualized. See Accompanying Notes to Financial Statements. 32 CREDIT SUISSE SMALL CAP VALUE FUND FINANCIAL HIGHLIGHTS (For a Class B Share of the Fund Outstanding Throughout Each Period) --------------------------------------------------------------------------------
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED OCTOBER 31, APRIL 30, 2005 ------------------------------------------------------------ (UNAUDITED) 2004 2003 2002 2001 2000 ----------- -------- -------- -------- -------- -------- PER SHARE DATA Net asset value, beginning of period $ 21.20 $ 18.93 $ 17.74 $ 20.33 $ 21.95 $ 20.13 ----------- -------- -------- -------- -------- -------- INVESTMENT OPERATIONS Net investment loss 1 (0.10) (0.20) (0.15) (0.12) (0.10) (0.09) Net gain on investments (both realized and unrealized) 1.29 3.53 2.93 0.32 1.70 3.96 ----------- -------- -------- -------- -------- -------- Total from investment operations 1.19 3.33 2.78 0.20 1.60 3.87 ----------- -------- -------- -------- -------- -------- LESS DISTRIBUTIONS Distributions from net realized gains (2.18) (1.06) (1.59) (2.79) (3.22) (2.05) ----------- -------- -------- -------- -------- -------- NET ASSET VALUE, END OF PERIOD $ 20.21 $ 21.20 $ 18.93 $ 17.74 $ 20.33 $ 21.95 =========== ======== ======== ======== ======== ======== Total return 2 5.44% 18.25% 16.88% (0.08)% 8.88% 20.80% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (000s omitted) $ 18,659 $ 20,425 $ 22,669 $ 19,999 $ 17,818 $ 17,255 Ratio of expenses to average net assets 2.13% 3 2.17% 2.23% 2.07% 2.08% 2.10% Ratio of net investment loss to average net assets (0.95)% 3 (0.97)% (0.86)% (0.63)% (0.50)% (0.43)% Decrease reflected in above operating expense ratios due to waivers -- -- 0.04% 0.13% 0.02% -- Portfolio turnover rate 11% 41% 30% 18% 54% 42%
-------------------------------------------------------------------------------- 1 Per share information is calculated using the average shares outstanding method. 2 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. 3 Annualized. See Accompanying Notes to Financial Statements. 33 CREDIT SUISSE SMALL CAP VALUE FUND FINANCIAL HIGHLIGHTS (For a Class C Share of the Fund Outstanding Throughout Each Period) --------------------------------------------------------------------------------
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED OCTOBER 31, APRIL 30, 2005 ------------------------------------------------------------ (UNAUDITED) 2004 2003 2002 2001 2000 1 ----------- -------- -------- -------- -------- -------- PER SHARE DATA Net asset value, beginning of period $ 21.13 $ 18.87 $ 17.69 $ 20.28 $ 21.94 $ 17.96 ----------- -------- -------- -------- -------- -------- INVESTMENT OPERATIONS Net investment loss 2 (0.10) (0.19) (0.15) (0.12) (0.11) (0.07) Net gain on investments (both realized and unrealized) 1.29 3.51 2.92 0.32 1.67 4.05 ----------- -------- -------- -------- -------- -------- Total from investment operations 1.19 3.32 2.77 0.20 1.56 3.98 ----------- -------- -------- -------- -------- -------- LESS DISTRIBUTIONS Distributions from net realized gains (2.18) (1.06) (1.59) (2.79) (3.22) -- ----------- -------- -------- -------- -------- -------- NET ASSET VALUE, END OF PERIOD $ 20.14 $ 21.13 $ 18.87 $ 17.69 $ 20.28 $ 21.94 =========== ======== ======== ======== ======== ======== Total return 3 5.45% 18.25% 16.87% (0.07)% 8.93% 22.16% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (000s omitted) $ 12,942 $ 11,613 $ 8,138 $ 4,271 $ 1,481 $ 220 Ratio of expenses to average net assets 2.13% 4 2.17% 2.23% 2.07% 2.08% 1.42% 4 Ratio of net investment loss to average net assets (0.95)% 4 (0.97)% (0.86)% (0.63)% (0.52)% (0.33)% 4 Decrease reflected in above operating expense ratios due to waivers -- -- 0.04% 0.14% 0.02% -- Portfolio turnover rate 11% 41% 30% 18% 54% 42%
-------------------------------------------------------------------------------- 1 For the period February 28, 2000 (inception date) through October 31, 2000. 2 Per share information is calculated using the average shares 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 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. 34 CREDIT SUISSE FUNDS NOTES TO FINANCIAL STATEMENTS April 30, 2005 (unaudited) -------------------------------------------------------------------------------- NOTE 1. ORGANIZATION The Credit Suisse Capital Funds (the "Trust") covered in this report are Credit Suisse Large Cap Value Fund ("Large Cap Value") and Credit Suisse Small Cap Value Fund ("Small Cap Value") (each a "Fund" and collectively, the "Funds"). The Trust is registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end management investment company. The Trust was organized under the laws of the Commonwealth of Massachusetts as a business trust on November 26, 1985. Each Fund is classified as diversified. Investment objectives for each Fund are as follows: Large Cap Value seeks long-term capital appreciation and continuity of income; Small Cap Value seeks a high level of growth of capital. Large Cap Value offers five classes of shares: Common Class shares, Advisor Class shares, Class A shares, Class B shares and Class C shares. Small Cap Value offers four classes of shares: Common Class shares, Class A shares, Class B shares and Class C shares. Effective December 12, 2001, Large Cap Value closed the Common Class to new investments, except for reinvestment of dividends. Large Cap Value's Common Class shareholders as of the close of business on December 12, 2001 may continue to hold Common Class shares but may not add to their accounts. Although no further shares can be purchased, Large Cap Value's shareholders can redeem their Common Class shares through any available method. Small Cap Value'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 ("CSAM"), (3) certain registered investment advisers ("RIAs"), (4) certain broker-dealers and RIAs with clients participating in comprehensive fee programs and (5) employees of CSAM or its affiliates and current and former Directors or Trustees of funds advised by CSAM or its affiliates. Any Common Class shareholder as of the close of business on December 12, 2001 can continue to buy Common Class shares of Small Cap Value and open new accounts under the same Social Security number. Each class of shares in each Fund represents an equal pro rata interest in that Fund, except that each bears different expenses, which reflect the difference in the range of services provided to them. Class A shares of each Fund 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% to zero depending on the period of time the 35 CREDIT SUISSE FUNDS NOTES TO FINANCIAL STATEMENTS (CONTINUED) April 30, 2005 (unaudited) -------------------------------------------------------------------------------- NOTE 1. ORGANIZATION shares are held. Class C shares of each Fund are sold subject to a contingent deferred sales charge of 1.00% if redeemed within the first year of purchase. NOTE 2. SIGNIFICANT ACCOUNTING POLICIES A) SECURITY VALUATION -- The net asset value of each Fund is determined daily as of the close of regular trading on the New York Stock Exchange, Inc. (the "Exchange") on each day the Exchange is open for business Each Fund's equity investments are valued at market value, which is generally determined using the closing price on the exchange or market on which the security is primarily traded at the time of valuation (the "Valuation Time"). If no sales are reported, equity investments are generally valued at the most recent bid quotation as of the Valuation Time or at the lowest asked quotation in the case of a short sale of securities. Debt securities with a remaining maturity greater than 60 days are valued in accordance with the price supplied by a pricing service, which may use a matrix, formula or other objective method that takes into consideration market indices, yield curves and other specific adjustments. Debt obligations that will mature in 60 days or less are valued on the basis of amortized cost, which approximates market value, unless it is determined that this method would not represent fair value. Securities and other assets for which market quotations are not readily available, or whose values have been materially affected by events occurring before the Funds' 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 Trustees under procedures established by the Board of Trustees. The Funds may utilize a service provided by an independent third party which has been approved by the Board of Trustees to fair value certain securities. 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 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 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. 36 CREDIT SUISSE FUNDS NOTES TO FINANCIAL STATEMENTS (CONTINUED) April 30, 2005 (unaudited) -------------------------------------------------------------------------------- NOTE 2. SIGNIFICANT ACCOUNTING POLICIES C) DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- Dividends from net investment income, if any, are declared and paid quarterly by Large Cap Value and at least annually by Small Cap Value. Distributions of net realized capital gains, if any, are declared and paid at least annually by the Funds. 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 each 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 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 Funds, together with other funds/portfolios advised by Credit Suisse Asset Management, LLC ("CSAM"), an indirect, wholly-owned subsidiary of Credit Suisse Group, pool available cash into either a short-term variable rate time deposit issued by State Street Bank and Trust Company ("SSB"), the Funds' custodian, or a money market fund advised by CSAM. The short-term time deposit issued by SSB is a variable rate account classified as a short-term investment. 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 Funds in connection with securities lending activity may be pooled together with cash collateral for other funds/portfolios advised by CSAM and may be invested in a variety of 37 CREDIT SUISSE FUNDS NOTES TO FINANCIAL STATEMENTS (CONTINUED) April 30, 2005 (unaudited) -------------------------------------------------------------------------------- NOTE 2. SIGNIFICANT ACCOUNTING POLICIES investments, including certain CSAM-advised funds, funds advised by SSB, the Funds' securities lending agent, or money market instruments. However, in the event of default or bankruptcy by the other party to the agreement, realization and/or retention of the collateral may be subject to legal proceedings. SSB has been engaged by the Funds to act as the Funds' securities lending agent. The Funds' securities lending arrangement provides that the Funds and SSB will share the net income earned from securities lending activities. During the six months ended April 30, 2005, total earnings from the Funds' investments in cash collateral received in connection with Large Cap Value and Small Cap Value's securities lending arrangements were $145,774 and $384,585, respectively, of which $129,788 and $368,440, respectively, were rebated to borrowers (brokers). The Funds retained $11,178 and $11,131, respectively, from the cash collateral investment and SSB, as lending agent, was paid $4,808, and $5,014, respectively. The Funds may also be entitled to certain minimum amounts of income from their securities lending activities. Securities lending is accrued as earned. H) OTHER -- Large Cap Value may invest up to 10% and Small Cap Value may invest up to 15% of its net assets in restricted and other illiquid securities. Non-publicly traded securities may be less liquid than publicly traded securities. Although these securities may be resold in privately negotiated transactions, the prices realized from such sales could differ from the price originally paid by the Funds or the current carrying values, and the difference could be material. NOTE 3. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES CSAM serves as investment adviser for each Fund. For its investment advisory services, CSAM is entitled to receive the following fees, computed daily and payable monthly, on each Fund's average daily net assets as follows: FUND ANNUAL RATE ---- ----------- Large Cap Value 0.75% of average daily net assets up to and including $75 million 0.50% of average daily net assets in excess of $75 million Small Cap Value 0.875% of first $100 million of average daily net assets 0.75% of next $100 million of average daily net assets 0.625% of average daily net assets over $200 million 38 CREDIT SUISSE FUNDS NOTES TO FINANCIAL STATEMENTS (CONTINUED) April 30, 2005 (unaudited) -------------------------------------------------------------------------------- NOTE 3. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES For the six months ended April 30, 2005, investment advisory fees earned for each Fund were as follows: FUND GROSS ADVISORY FEE ---- ------------------ Large Cap Value $ 972,914 Small Cap Value 1,121,434 Credit Suisse Asset Management Securities, Inc. ("CSAMSI"), an affiliate of CSAM, and SSB serve as co-administrators to the Funds. For its co-administrative services, CSAMSI currently receives a fee calculated at an annual rate of 0.10% of each Fund's average daily net assets. For the six months ended April 30, 2005, co-administrative services fees earned by CSAMSI were as follows: FUND CO-ADMINISTRATION FEE ---- --------------------- Large Cap Value $ 175,987 Small Cap Value 149,676 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 six months ended April 30, 2005, co-administrative services fees earned by SSB (including out-of-pocket fees) were as follows: FUND CO-ADMINISTRATION FEE ---- --------------------- Large Cap Value $ 112,796 Small Cap Value 97,501 In addition to serving as each Fund's co-administrator, CSAMSI currently serves as distributor of each Fund's shares. Pursuant to distribution plans adopted by each 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 of Small Cap Value and Class A shares of each Fund. Advisor Class shares of Large Cap Value may pay this fee at an annual rate not to exceed 0.75% of such class's average daily assets; such fee is currently calculated at the annual rate of 0.50% of the average daily net assets of such class For Class B and Class C shares, the fee is calculated at an annual rate of 1.00% of the average daily net assets of such classes. Certain brokers, dealers and financial representatives provide transfer agent--related services to the Funds, and receive compensation from CSAM. 39 CREDIT SUISSE FUNDS NOTES TO FINANCIAL STATEMENTS (CONTINUED) April 30, 2005 (unaudited) -------------------------------------------------------------------------------- NOTE 3. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES CSAM is then reimbursed by the Funds. For the six months ended April 30, 2005, Small Cap Value reimbursed CSAM the following amount, which is included in the Fund's transfer agent expense: FUND AMOUNT ---- -------- Small Cap Value $ 89,361 For the six months ended April 30, 2005, CSAMSI and its affiliates advised the Funds that they retained the following amounts from commissions earned on the sale of the Funds' Class A shares: FUND AMOUNT ---- -------- Large Cap Value $ 10,947 Small Cap Value 11,626 Merrill Corporation ("Merrill"), an affiliate of CSAM, has been engaged by the Funds to provide certain financial printing and fulfillment services. For the six months ended April 30, 2005, Merrill was paid for its services by the Funds as follows: FUND AMOUNT ---- -------- Large Cap Value $ 7,705 Small Cap Value 7,705 NOTE 4. LINE OF CREDIT The Funds, together with other funds/portfolios advised by CSAM (collectively, the "Participating Funds"), participate 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 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 April 30, 2005, and during the six months ended April 30, 2005, the Funds had no borrowings under the Credit Facility. 40 CREDIT SUISSE FUNDS NOTES TO FINANCIAL STATEMENTS (CONTINUED) April 30, 2005 (unaudited) -------------------------------------------------------------------------------- NOTE 5. PURCHASES AND SALES OF SECURITIES For the six months ended April 30, 2005, purchases and sales of investment securities (excluding short-term investments) were as follows: PURCHASES SALES ------------ ------------ Large Cap Value $ 67,610,652 $ 92,964,675 Small Cap Value 32,538,205 43,816,271 At April 30, 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 was as follows:
GROSS UNREALIZED GROSS UNREALIZED NET UNREALIZED FUND IDENTIFIED COST APPRECIATION (DEPRECIATION) APPRECIATION ----- --------------- ---------------- ----------------- -------------- Large Cap Value $ 275,415,328 $ 84,477,541 $ (8,072,338) $ 76,405,203 Small Cap Value 238,971,143 93,281,205 (6,603,420) 86,677,785
NOTE 6. CAPITAL SHARE TRANSACTIONS Large Cap Value is authorized to issue an unlimited number of full and fractional shares of beneficial interest, $0.001 par value per share, of which an unlimited number of shares are classified as Common Class shares, Advisor Class shares, Class A shares, Class B shares and Class C shares. Small Cap Value is authorized to issue an unlimited number of full and fractional shares of beneficial interest, $.001 par value per share, of which an unlimited number of shares are classified as Common Class shares, Class A shares, Class B shares and Class C shares. Transactions in capital shares of the Funds were as follows:
LARGE CAP VALUE --------------------------------------------------------- COMMON CLASS --------------------------------------------------------- FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED APRIL 30, 2005 (UNAUDITED) OCTOBER 31, 2004 --------------------------------------------------------- SHARES VALUE SHARES VALUE ------------ ------------ ------------ ------------ Shares issued in reinvestment of dividends and distributions 2,307 $ 45,833 1,301 $ 24,882 Shares redeemed (2,403) (48,650) (7,655) (148,490) ------------ ------------ ------------ ------------ Net decrease (96) $ (2,817) (6,354) $ (123,608) ============ ============ ============ ============
41 CREDIT SUISSE FUNDS NOTES TO FINANCIAL STATEMENTS (CONTINUED) APRIL 30, 2005 (UNAUDITED) -------------------------------------------------------------------------------- NOTE 6. CAPITAL SHARE TRANSACTIONS
LARGE CAP VALUE --------------------------------------------------------- ADVISOR CLASS --------------------------------------------------------- FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED APRIL 30, 2005 (UNAUDITED) OCTOBER 31, 2004 --------------------------------------------------------- SHARES VALUE SHARES VALUE ------------ ------------ ------------ ------------ Shares sold 38,275 $ 786,242 93,310 $ 1,829,621 Shares issued in reinvestment of dividends and distributions 38,842 775,622 36,998 706,961 Shares redeemed (233,602) (4,777,772) (715,248) (14,140,852) ------------ ------------ ------------ ------------ Net decrease (156,485) $ (3,215,908) (584,940) $(11,604,270) ============ ============ ============ ============
LARGE CAP VALUE --------------------------------------------------------- CLASS A --------------------------------------------------------- FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED APRIL 30, 2005 (UNAUDITED) OCTOBER 31, 2004 --------------------------------------------------------- SHARES VALUE SHARES VALUE ------------ ------------ ------------ ------------ Shares sold 704,449 $ 14,467,168 1,319,472 $ 26,008,199 Shares issued in reinvestment of dividends and distributions 1,011,933 20,176,895 531,611 10,191,675 Shares redeemed (1,610,562) (32,956,666) (3,152,005) (61,935,697) ------------ ------------ ------------ ------------ Net increase (decrease) 105,820 $ 1,687,397 (1,300,922) $(25,735,823) ============ ============ ============ ============
LARGE CAP VALUE --------------------------------------------------------- CLASS B --------------------------------------------------------- FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED APRIL 30, 2005 (UNAUDITED) OCTOBER 31, 2004 --------------------------------------------------------- SHARES VALUE SHARES VALUE ------------ ------------ ------------ ------------ Shares sold 44,802 $ 897,358 86,581 $ 1,671,302 Shares issued in reinvestment of dividends and distributions 64,892 1,274,650 38,328 719,319 Shares redeemed (257,698) (5,237,307) (465,367) (9,028,287) ------------ ------------ ------------ ------------ Net decrease (148,004) $ (3,065,299) (340,458) $ (6,637,666) ============ ============ ============ ============
LARGE CAP VALUE --------------------------------------------------------- CLASS C --------------------------------------------------------- FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED APRIL 30, 2005 (UNAUDITED) OCTOBER 31, 2004 --------------------------------------------------------- SHARES VALUE SHARES VALUE ------------ ------------ ------------ ------------ Shares sold 17,980 $ 356,678 61,896 $ 1,191,147 Shares issued in reinvestment of dividends and distributions 11,177 218,425 4,557 85,152 Shares redeemed (26,201) (522,599) (66,298) (1,273,105) ------------ ------------ ------------ ------------ Net increase 2,956 $ 52,504 155 $ 3,194 ============ ============ ============ ============
42 CREDIT SUISSE FUNDS NOTES TO FINANCIAL STATEMENTS (CONTINUED) April 30, 2005 (unaudited) -------------------------------------------------------------------------------- NOTE 6. CAPITAL SHARE TRANSACTIONS
SMALL CAP VALUE --------------------------------------------------------- COMMON CLASS --------------------------------------------------------- FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED APRIL 30, 2005 (UNAUDITED) OCTOBER 31, 2004 --------------------------------------------------------- SHARES VALUE SHARES VALUE ------------ ------------ ------------ ------------ Shares sold 628,318 $ 14,597,474 649,415 $ 14,092,209 Shares issued in reinvestment of dividends and distributions 223,428 4,957,871 121,963 2,461,214 Shares redeemed (298,034) (6,784,771) (957,605) (20,733,147) ------------ ------------ ------------ ------------ Net increase (decrease) 553,712 $ 12,770,574 (186,227) $ (4,179,724) ============ ============ ============ ============
SMALL CAP VALUE --------------------------------------------------------- CLASS A --------------------------------------------------------- FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED APRIL 30, 2005 (UNAUDITED) OCTOBER 31, 2004 --------------------------------------------------------- SHARES VALUE SHARES VALUE ------------ ------------ ------------ ------------ Shares sold 1,343,641 $ 30,976,627 2,507,834 $ 53,689,869 Shares issued in reinvestment of dividends and distributions 785,344 17,505,316 461,139 9,342,671 Shares redeemed (1,621,711) (37,418,923) (3,602,673) (77,659,751) ------------ ------------ ------------ ------------ Net increase (decrease) 507,274 $ 11,063,020 (633,700) $(14,627,211) ============ ============ ============ ============
SMALL CAP VALUE --------------------------------------------------------- CLASS B --------------------------------------------------------- FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED APRIL 30, 2005 (UNAUDITED) OCTOBER 31, 2004 --------------------------------------------------------- SHARES VALUE SHARES VALUE ------------ ------------ ------------ ------------ Shares sold 55,507 $ 1,177,599 76,218 $ 1,522,417 Shares issued in reinvestment of distributions 82,688 1,703,368 56,847 1,080,090 Shares redeemed (178,398) (3,832,623) (367,111) (7,409,177) ------------ ------------ ------------ ------------ Net decrease (40,203) $ (951,656) (234,046) $ (4,806,670) ============ ============ ============ ============
SMALL CAP VALUE --------------------------------------------------------- CLASS C --------------------------------------------------------- FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED APRIL 30, 2005 (UNAUDITED) OCTOBER 31, 2004 --------------------------------------------------------- SHARES VALUE SHARES VALUE ------------ ------------ ------------ ------------ Shares sold 109,850 $ 2,322,298 202,943 $ 4,051,369 Shares issued in reinvestment of distributions 34,443 707,116 17,853 338,141 Shares redeemed (51,214) (1,068,673) (102,474) (2,076,291) ------------ ------------ ------------ ------------ Net increase 93,079 $ 1,960,741 118,322 $ 2,313,219 ============ ============ ============ ============
43 CREDIT SUISSE FUNDS NOTES TO FINANCIAL STATEMENTS (CONTINUED) April 30, 2005 (unaudited) -------------------------------------------------------------------------------- NOTE 6. CAPITAL SHARE TRANSACTIONS On April 30, 2005, the number of shareholders that held 5% or more of the outstanding shares of each class of the Funds was as follows: NUMBER OF APPROXIMATE PERCENTAGE FUND SHAREHOLDERS OF OUTSTANDING SHARES ---- ------------ ---------------------- Large Cap Value Common Class 4 48% Advisor Class 1 95% Class A 2 20% Class B 1 7% Class C 3 25% Small Cap Value Common Class 4 76% Class A 1 5% Class B 1 5% Class C 1 9% Some of the shareholders are omnibus accounts, which hold shares on behalf of individual shareholders. NOTE 7. CONTINGENCIES In the normal course of business, the Funds may provide general indemnifications pursuant to certain contracts and organizational documents. A Fund's maximum exposure under these arrangements is dependent on future claims that may be made against the Fund's and, therefore, cannot be estimated; however, based on experience, the risk of loss from such claims is considered remote. 44 CREDIT SUISSE FUNDS BOARD APPROVAL OF ADVISORY AGREEMENTS (UNAUDITED) -------------------------------------------------------------------------------- In approving the Advisory Agreement for each Fund, the Board of Trustees of each Fund, including the Independent Trustees, considered the following factors: INVESTMENT ADVISORY FEE RATES ----------------------------- The Boards reviewed and considered the contractual advisory fee rates of 0.55% and 0.76% paid by Large Cap Value and Small Cap Value, respectively (each, a "Contractual Advisory Fee") to CSAM in light of the extent and quality of the advisory services provided. Additionally, the Boards received and considered information comparing each Fund's Contractual Advisory Fee and each Fund's overall expenses with those of funds in both the relevant expense group ("Peer Group") and universe of funds (the "Universe") provided by an independent provider of investment company data. NATURE, EXTENT AND QUALITY OF THE SERVICES UNDER THE ADVISORY AGREEMENTS ------------------------------------------------------------------------ The Boards received and considered information regarding the nature, extent and quality of services provided to each Fund by CSAM under the Advisory Agreements. The Boards also noted information received at regular meetings throughout the year related to the services rendered by CSAM. The Boards reviewed background information about CSAM, including its Form ADV. The Boards considered the background and experience of CSAM's senior management and the expertise of, and the amount of attention given to each Fund by, senior personnel of CSAM. In addition, the Boards reviewed the qualifications, background and responsibilities of the portfolio management teams primarily responsible for the day-to-day portfolio management of each Fund and the extent of the resources devoted to research and analysis of actual and potential investments. The Boards also received and considered information about the nature, extent and quality of services and fee rates offered to other CSAM clients for comparable services. FUND PERFORMANCE ---------------- The Boards received and considered the one-year, five-year and ten-year performance of each Fund, along with comparisons, for all presented periods, both to the Peer Group and the Universe. The Boards were provided with a description of the methodology used to arrive at the data for the funds included in the Peer Group and the Universe. 45 CREDIT SUISSE FUNDS BOARD APPROVAL OF ADVISORY AGREEMENTS (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- The Boards reviewed information comparing the performance of the various Credit Suisse Funds to performance benchmarks that the Boards had previously established and progress that had been made in certain instances toward achieving those benchmarks. The Boards also reviewed comparisons between each Fund and its identified benchmark over various time periods. CSAM PROFITABILITY ------------------ The Boards received and considered a detailed profitability analysis of CSAM based on the fees payable under the Advisory Agreements for each Fund, as well as other relationships between each Fund on the one hand and CSAM affiliates on the other. The Boards received profitability information for the other funds in the CSAM family of funds (the "Fund Complex"). ECONOMIES OF SCALE ------------------ The Boards considered whether economies of scale in the provision of services to each Fund were being passed along to the shareholders. Accordingly, the Boards 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 each Fund's asset levels. OTHER BENEFITS TO CSAM ---------------------- The Boards considered other benefits received by CSAM and its affiliates as a result of its relationship with each Fund. Such benefits include, among others, research arrangements with brokers who execute transactions on behalf of each Fund, administrative and brokerage relationships with affiliates of CSAM and benefits potentially derived from an increase in CSAM's business as a result of its relationship with each Fund (such as the ability to market to shareholders other financial products offered by CSAM and its affiliates). The Boards 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 Boards also reviewed CSAM's method for allocating portfolio investment opportunities among each Fund and other advisory clients. 46 CREDIT SUISSE FUNDS BOARD APPROVAL OF ADVISORY AGREEMENTS (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- CONCLUSIONS ----------- In selecting CSAM, and approving the Advisory Agreements and the investment advisory fee under such agreement, the Boards concluded that: LARGE CAP VALUE o the Contractual Advisory Fee level was considered reasonable given that it was in the second quintile of the Fund's Peer Group. o the Fund's ten-year performance was the best in its Peer Group, although the Fund's one and five-year performance was at approximately the median of its Peer Group. The Board considered the improvements in the Fund's recent performance to be a positive reflection of the enhanced research and portfolio management changes instituted by CSAM. SMALL CAP VALUE o the Contractual Advisory Fee level was considered reasonable given that it was slightly above the median of the Fund's Peer Group. o the Fund's one, five and ten-year performance lagged that of its Peer Group and benchmark. The Board discussed the underperformance with CSAM, and CSAM subsequently advised the Board that changes in the methodology for managing the Fund are under review in order to address the underperformance. BOTH FUNDS o aside from performance (as discussed above), the Boards were satisfied with the nature and extent of the investment advisory services provided to each Fund by CSAM and that, based on dialogue with management and counsel, the services provided by CSAM under the Advisory Agreements are typical of, and consistent with, those provided to similar mutual funds by other investment advisers. The Boards understood that CSAM had addressed or was in the process of addressing any performance issues. o in light of the costs of providing investment management and other services to each Fund and CSAM's ongoing commitment to each Fund, the profits and other ancillary benefits that CSAM and its affiliates received were considered reasonable. 47 CREDIT SUISSE FUNDS BOARD APPROVAL OF ADVISORY AGREEMENTS (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- o CSAM's profitability based on fees payable under the Advisory Agreements was reasonable in light of the nature, extent and quality of the services provided to each Fund thereunder. No single factor reviewed by the Boards was identified by the Boards as the principal factor in determining whether to approve the Advisory Agreements. The Independent Trustees were advised by separate independent legal counsel throughout the process. 48 CREDIT SUISSE FUNDS PRIVACY POLICY NOTICE (UNAUDITED) -------------------------------------------------------------------------------- IMPORTANT PRIVACY CHOICES FOR CONSUMERS --------------------------------------- We are committed to maintaining the privacy of every current and prospective customer. We recognize that you entrust important personal information to us, and we wish to assure you that we take seriously our responsibilities in protecting and safeguarding this information. In connection with making available investment products and services to current and potential customers, we may obtain nonpublic personal information about you. This information may include your name, address, e-mail address, social security number, account number, assets, income, financial situation, transaction history and other personal information. We may collect nonpublic information about you from the following sources: o Information we receive on applications, forms, questionnaires, web sites, agreements or in the course of establishing or maintaining a customer relationship; and o Information about your transactions with us, our affiliates, or others. We do not disclose any nonpublic personal information about our customers or former customers to anyone, except with your consent or as otherwise permitted by law. RESTRICT INFORMATION SHARING WITH AFFILIATES: In cases where we believe that additional products and services may be of interest to you, we may share the information described above with our affiliates unless you say "No." || No, please do not share personal and financial information with your affiliated companies. [If you check this box, you must send this notice back to us with your name, address and account number to Credit Suisse Funds, 466 Lexington Avenue, New York, New York 10017.] We may also disclose this information to firms that perform services on our behalf. These agents and service providers are required to treat the information confidentially and use it only for the purpose for which it is provided. We restrict access to nonpublic personal information about you to those employees, agents or other parties who need to know that information to provide products or services to you or in connection with your investments with or through us. We maintain physical, electronic and procedural safeguards that comply with federal standards to guard your nonpublic personal information. NOTE: THIS NOTICE IS PROVIDED TO CLIENTS AND PROSPECTIVE CLIENTS OF CREDIT SUISSE ASSET MANAGEMENT, LLC ("CSAM"), AND CREDIT SUISSE ASSET MANAGEMENT SECURITIES, INC., AND SHAREHOLDERS AND PROSPECTIVE SHAREHOLDERS IN CSAM-SPONSORED AND ADVISED INVESTMENT COMPANIES, INCLUDING CREDIT SUISSE FUNDS, AND OTHER CONSUMERS AND CUSTOMERS, AS APPLICABLE. THIS NOTICE IS NOT INTENDED TO BE INCORPORATED IN ANY OFFERING MATERIALS BUT IS MERELY A STATEMENT OF OUR CURRENT PRIVACY POLICY, AND MAY BE AMENDED FROM TIME TO TIME UPON NOTICE TO YOU. THIS NOTICE IS DATED AS OF MAY 17, 2005. 49 CREDIT SUISSE FUNDS PROXY VOTING AND PORTFOLIO HOLDINGS INFORMATION (UNAUDITED) -------------------------------------------------------------------------------- Information regarding how each Fund voted proxies related to its portfolio securities during the 12-month period ended June 30, 2004 as well as the policies and procedures that each 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 Fund's website, www.csam.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 Funds' 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. 50 This page intentionally left blank This page intentionally left blank P.O. BOX 55030, BOSTON, MA 02205-5030 CREDIT | ASSET 800-927-2874 o WWW.CSAM.COM/US SUISSE | MANAGEMENT CREDIT SUISSE ASSET MANAGEMENT SECURITIES, INC., DISTRIBUTOR. USEQVAL-SAR-0405 ITEM 2. CODE OF ETHICS. This item is inapplicable to a semi-annual report on Form N-CSR. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. This item is inapplicable to a semi-annual report on Form N-CSR. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. This item is inapplicable to a semi-annual report on Form N-CSR. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. This item 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. This item is not applicable to the registrant. ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. This item is not applicable to the registrant. ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. This item is not applicable to the registrant. ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS The Nominating Committee recommends Board member candidates. Shareholders of the registrant may also submit nominees that will be considered by the Committee. Recommendations should be mailed to the registrant's Secretary, c/o Credit Suisse Asset Management, LLC, 466 Lexington Avenue, New York, NY 10017. Any submission should include at a minimum the following information: the name, age, business address, residence address and principal occupation or employment of such individual; the class, series and number of shares of the registrant that are beneficially owned by such individual; the date such shares were acquired and the investment intent of such acquisition; whether such shareholder believes such individual is, or is not, an "interested person" of the registrant (as defined in the Investment Company Act of 1940) and information regarding such individual that is sufficient, in the Committee's discretion, to make such determination; and all other information relating to such individual that is required to be disclosed in solicitation of proxies for election of directors in an election contest (even if an election contest is not involved) or is otherwise required pursuant to the rules for proxy materials under the Securities Exchange Act of 1934. ITEM 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 registrant's last fiscal half-year that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting. ITEM 12. EXHIBITS. (a)(1) Not applicable. (a)(2) The certifications of the registrant as required by Rule 30a-2(a) under the Act are exhibits to this report. (a)(3) Not applicable. (b) The certifications of the registrant as required by Rule 30a-2(b) under the Act are an exhibit to this report. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Credit Suisse Capital Funds /s/ Michael E. Kenneally -------------------------------- Name: Michael E. Kenneally Title: Chief Executive Officer Date: July 5, 2005 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/ Michael E. Kenneally -------------------------------- Name: Michael E. Kenneally Title: Chief Executive Officer Date: July 5, 2005 /s/ Michael A. Pignataro -------------------------------- Name: Michael A. Pignataro Title: Chief Financial Officer Date: July 5, 2005